Impact of 2024 Budget on Surrey: Five Areas to Monitor

Chancellor Rachel Reeves is scheduled to unveil her government’s tax and expenditure proposals in the House of Commons on Wednesday. This raises questions about the potential effects of this year’s Budget on residents of Surrey. The following outlines five key areas to observe. In July, Labour initiated a review of the strategy to construct 40 additional hospitals by 2030. This review forms part of broader efforts to tackle a £22bn deficit in the nation’s financial resources. The New Hospitals Programme incorporates the development of a new facility in south London, intended to supersede healthcare provisions currently offered by Epsom and St Helier hospitals. Certain structures at both locations have previously been characterized as “crumbling” and predating the NHS itself. Surrey MPs have emphasized that it is “vital” for this rebuilding initiative to proceed as planned. During Prime Minister’s Questions, immediately preceding the Budget announcement, Monica Harding, the Liberal Democrat MP for Esher and Walton, called upon the government to “properly” allocate funds for special educational needs and disabilities (Send). Other parliamentary representatives have voiced worries that numerous parents encounter difficulties in securing assistance for their children, and the leader of Surrey County Council has extended an apology to families who have experienced shortcomings in their provision. Deputy Prime Minister Angela Rayner stated her confidence that the Chancellor had “heard” the discussions pertaining to this matter. The BBC has ascertained that the government intends to augment the revenue generated from inheritance tax. This tax is levied at a rate of 40% on the assets, belongings, and funds of a deceased individual exceeding the £325,000 threshold. The precise number of individuals who may incur increased payments, or the extent of such increases, remains undisclosed. Annually, London and the South East record the highest volume of estates subject to this tax. Guildford was identified in 2018 as the “inheritance tax capital” of the UK. Rachel Reeves is anticipated to permit Stamp Duty thresholds to revert to the levels established prior to Liz Truss’ mini-Budget. This tax becomes payable upon the acquisition of property or land exceeding a specified value. In 2022, the threshold was elevated to £250,000 (or £425,000 for first-time buyers); however, the Chancellor might reduce it once more. Given that Surrey ranks among the most costly locations in the UK for home purchases, concerns are likely to arise regarding the potential effects on the regional property market. The government has previously announced that a 20% VAT rate will be applied to private school fees commencing 1 January 2025. Ministers contend that this increment is necessary to contribute to the funding of 6,500 new educators across England. During the 2021–2022 academic year, slightly less than 20% of children in Surrey attended a private school, representing a greater proportion of students compared to other regions of the country. According to the Local Democracy Reporting Service, Surrey’s six Conservative MPs have advocated for the exemption of families with children requiring special educational needs from these proposals.