Budget 2024: A1 dualling scrapped, funding for Sunderland film studios and more
The chancellor Rachel Reeves has delivered her Budget to the House of Commons today, outlining the Labour government's plans for the economy - but what does it mean for the North East?
The raft of measures introduced by Ms Reeves include scrapping the dualling of the A1, raising the £2 bus fare cap to £3, increasing the living wage, and a promise of cash for a Sunderland film studio.
While pay packet taxes will not rise, in total there will be an estimated £40 billion rise in taxes. This comes from a range of measures, but also the amount of national insurance contributions employers will now have to make.
What's in the Budget for the North East?
A1 dualling
After years of uncertainty, plans to dual a 13-mile stretch of the A1 in Northumberland from Morpeth to Ellingham have been scrapped by the government in the Budget.
The previous government had delayed the decision on whether to dual the A1 right up until former prime minister Rishi Sunak called the general election. It was then decided that the dualling would go ahead.
But today in the budget, Ms Reeves called the plans "unfunded and unaffordable" and has scrapped the plan.
Buses
The previous government put in place a £2 cap on single bus fares which was due to end in December this year.
The chancellor has announced today that she will extend the cap until December 2025 - but that it will begin at £3.
Sunderland film studio
The North East Mayoral Combined Authority, which is headed by Kim McGuinness, will be given £25 million to help remediate the Crown Works Studio site in Sunderland.
Ms Reeves confirmed the funding in the House of Commons, and said the cash would create around 8,000 new jobs and support the North East's creative industries.
Devolution
The North East Combined Authority will also benefit from a single funding pot beginning in 2026 - this will allow the Mayor Kim McGuinness more freedom.
Ms McGuinness said the announcement "paves the way for the biggest devolution deal in North East history".
She said: "This Budget gives the people of the North East more control over our own future.
"With more freedom from Whitehall and Westminster, we will make our region the home of real opportunity."
Teesside jobs
Teesside is set to benefit from job creation as the government will fund carbon capture projects.
4,000 jobs across the whole of the North of England are expected to be created as the government aim to fund power and hydrogen production plants.
Wages
The National Living Wage will rise by 6.7% to £12.21 an hour.
The National Minimum Wage is also set to rise from £8.60 to £10.00 an hour for 18 to 20 year olds - a 16% rise.
Fuel duty
There had been speculation that Ms Reeves would scrap the freeze on fuel duty, but it was confirmed today that it would remain frozen.
Further measures brought in by Ms Reeves include changes to air passenger duty, changes to taxation for private schools, and scrapping the non-domicile tax regime.
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