Britain’s chancellor, Rachel Reeves, recently announced Labour’s 2024 budget.
With a mandate for a decade of national renewal, Reeves has pledged to put more pounds in people’s pockets, improve living standards, and restore economic stability after 14 years of Conservative government.
The only way to drive this economic growth, Reeves insists, is to “invest, invest, invest.”
Here are the key points from the new budget:
With Labour’s new budget revealing an increase in employer NI contributions, this may affect both you and your staff. However, there’s a potential strategy for businesses to ease the burden.
By introducing salary sacrifice schemes, companies could help to offset some of the additional costs while providing attractive and meaningful benefits to their people.
To maximise savings on NI contributions, employers can choose to promote initiatives like Cycle to Work schemes and Car Leasing benefits to:
Encouraging participation in these schemes means businesses may be able to retain more funds, which they might decide to reinvest back into the business - or even pass on as incentives to their teams.
To help drive the transition to electric vehicles (EVs), the budget has maintained EV incentives and extended allowances for another year.
This is good news for businesses offering Car Leasing schemes as they can choose to continue to promote eco-friendly travel while potentially reducing their taxable benefits, supporting both environmental goals and employee wellbeing.
The Government has committed to a nearly 50% increase in funding for local roads maintenance from 2024/25. The aim is to repair one million potholes across England each year and improve safety for all road users.
This could add value to Cycle to Work and Car Leasing benefits, as employees may be more likely to consider these travel options knowing they can commute more securely.
Highlighting these benefits now could help employers support their teams and help demonstrate their commitment to safety and sustainability.
The new budget presents a unique opportunity for salary sacrifice schemes, especially as employees struggle with rising living costs and the financial stress of Christmas.
By tapping into the right benefits, employers can help make their people’s paychecks go further through perks and lifestyle discounts, set sustainability standards, and achieve organisational savings that drive success.
With 2025 approaching, it’s the perfect time to reassess your employee benefits. We're here to help you implement cost effective and meaningful solutions that really resonate with your team, so be sure to get in touch today.