Northern Ireland allocated extra £1.5bn in Labour's Budget

Rachel Reeves has delivered her first Budget as Chancellor, announcing an extra £1.5billion pounds for Stormont and confirming that City Deals for the Causeway Coast and Mid South West will go ahead after being controversially paused.

The long-awaited announcement outlined plans to increase taxes by £40billion - the biggest tax-raise in the UK in 30 years.

The Chancellor reiterated Labour's pledge that taxes will not hurt "working people", but how will Wednesday's budget announcement impact business owners, workers and consumers?

Key takeaways from the 2024 Budget:

  • Rates of income tax and National Insurance and VAT paid by employees to remain unchanged

  • Renewed commitment to the NHS

  • 6.7% rise in National Minimum Wage to £12.21 an hour

  • 1.2% rise in employer's National Insurance contribution to 15% (with the exception of smaller firms)

  • Greater duties on vaping liquid and tobacco products

  • Draught duty on alcoholic drinks to fall by 1.7% - meaning "a penny off a pint in the pub”

Whilst many fiscal responsibilities rest with Westminster, Stormont's budget is allocated based on the funding announced for England using the Barnett formula and spent on services such as health, education and transport.

What's in it for Northern Ireland specifically?

  • Extra £1.5 billion pounds allocated to Stormont next year

  • Additional money for infrastructure, policing and integrated education

  • Reinstatement of City Deals for Causeway Coast and Mid South West regions

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