Conservatives Manifesto Plans For Tax

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September 16th 2024
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Conservatives Manifesto Plans For Tax

Rishi Sunak has today unveiled the Conservative Party manifesto - how will this affect tax and take home pay?

To compare the tax policies of the Conservatives with the other leading political parties, you can use our new UK Election 2024 Tax Calculator.

Current Prime Minister Rishi Sunak today unveiled the Conservative Party manifesto, a day after the Liberal Democrats, and two days before the Labour Party will be releasing their manifesto on Thursday.

The manifesto is leading with tax cuts at the forefront, with headline grabbing figures to pull in the electorate.

National Insurance, already a target for cuts is stated to be cut again by two pence for people on PAYE (pay as you earn). This means the main rate of NICs will fall to 6 percent from the current 8 percent, however this is not promised to occur until April 2027 (in three years).

The self employed are being given an even bigger carrot with the promise to completely zero the main rate of NICs. This means that Class 4 NICs, which the self employed currently pay at a rate of 6 percent between profits of £12,570 and £50,270 will be abolished, saving up to over £2,000 in that band of income. This is promised to occur within the next parliament (5 years).

The Child Benefit cut off before the High Income Benefit Charge claws it back will be raised to £125,000 - a doubling from the recently hiked £60,000 ceiling. Parents at work are also promised 30 hours of free childcare a week for children from nine months to when they start school.

Pensioners will get the triple-lock-plus, which will see a rise in their tax-free allowance to cover pensions as Sunak says he will cut tax to ensure the state pension isn't taxable.

Sunak stated stamp duty for homes costing up to £425,000 will be zero-rated for first time buyers, but this has been the case since 2022. Talking of housing, Sunak states the Help to Buy scheme will be revived and 1.6 million homes will be built, with promises to protect the greenbelts.

The NHS, which is the top priority of the Lib Dems, is promised above inflation spending increases with over 90,000 nurses and near 30,000 doctors to be added. Dentist appointment capacity will be increased with 2.5 million slots promised.

Other spending includes over £30 billion on roads, rail, and buses, with a third isolated to fix the nation's growing pothole problem. This is to be funded from the axed portion of the HS2 budget.

Other spending is focused on defence and policing, but with so many giveaways during this election campaign from tax cuts to spending, the funding will be scrutinised over the coming weeks as cuts will have to be somewhere.

We look forward to Labour's response in a couple of days and then we can compare the in-the-pocket effect and the policies of the parties.

You can read the full Conservative Party manifesto on the Conservative Party website.

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