Response to the Autumn 2024 Budget
Think tank: National Institute of Economic and Social Research (NIESR)
Author(s): Various authors
October 31, 2024
This report from UK think tank the National Institute of Economic and Social Research discusses their response to the Autumn 2024 Budget.
This is a landmark Budget, the first to be delivered by a Labour government for 14 years, that that sets the tone for fiscal policy over the course of this Parliament. There are some very welcome announcements, including the increase in the National Minimum Wage. This will boost the living standards of nearly 2 million workers, especially those aged 18-20 who will receive a substantial 16.3 per cent increase. We also welcome a series of public investment projects in housing (including an increase in the number of socially affordable homes), in transport (such as building new cross-country train connectivity and fixing roads across the country) and in clean energy, as well as in early years provision and the health service. However, whilst we welcome higher spending on public services and more public investment which we have long advocated, we also feel that the Budget is a missed opportunity to rethink the fiscal framework and formulate a wider strategy for economic renewal.
As such, our analysis is that there are some building blocks but not yet firm foundations for stronger growth, higher living standards for the least well-off and a sustained regional regeneration wider strategy for economic renewal.
