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The Chancellor’s statement on 29 July 2024 – what lies on the horizon

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The Chancellor’s statement on 29 July 2024 – what lies on the horizon

This page was last updated on July 31, 2024
Following Chancellor Rachel Reeves' statement to the House of Commons on 29 July, we summarise the key takeaways and look ahead to what fiscal and accounting implications are on the horizon.

In the Chancellor’s statement to the House of Commons on 29 July, the new Chancellor, Rachel Reeves, revealed a £22 billion black hole in government finances for this year alongside a range of immediate cost-cutting measures. She also announced that further “difficult decisions” will be contained in the Autumn Budget, due on 30 October.

The statement followed the ‘spending inheritance’ review Reeves had commissioned from The Treasury and her request to new ministers to list the financial problems their departments faced. It also reflected a number of gloomy reports published on or around 23 July by The National Audit Office, the publication of which had been delayed by the election.  

Both the OBR and the IFS have subsequently suggested that Reeves had discovered more problems than were apparent in the documents produced around the Spring Budget 2024.

Plugging the hole

As a priority, the Chancellor announced a range of measures to achieve savings of £5.5 billion in the current financial year and £8.1 billion in 2025/26, including:

On the horizon

Alongside Reeves’ statement to the House of Commons, the Treasury published various related documents. These included:

An October Budget

The Chancellor also revealed that her Autumn Budget would be on 30 October – later than had originally been expected.

She added that the Budget “will involve taking difficult decisions to meet our fiscal rules across spending, welfare and tax” and has since said, “I think that we will have to increase taxes in the Budget”.

While Reeves reiterated Labour’s manifesto pledge that there would be no increases in…

… this points to capital gains tax, inheritance tax and tax reliefs as possible revenue-raising targets in the Autumn.

Can we help?

Rest assured, the Shipleys LLP team will monitor further Treasury announcements and the Autumn Budget to alert our clients to the fiscal implications for both personal and business finances.

Ahead of the possible shifts, if you are considering any financial planning in the near term (for example, pension contributions, divesting assets or estate planning with gifts to grandchildren) – talk to your Shipleys’ contact about the wisdom (or otherwise) of acting before 30 October.   


Specific advice should be obtained before taking action, or refraining from taking action, in relation to this summary. If you would like advice or further information, please speak to your usual Shipleys contact.

Copyright © Shipleys LLP 2024

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