The General Election is in a few days (Thursday the 4th July). So we’ve summarised how voting for the most popular parties could affect your finances. You can read their 2024 manifesto through the links below for more information on their key policies.
Labour
- Tax lock: There will be no increase in income tax, National Insurance or VAT rates.
- They plan to remove VAT and business rate exemptions on private schools. It’s not clear how it would affect parents yet and whether fees would go up by 20%, but it’s likely that attendance would fall due to this.
- An investment of £855m in HMRC to strengthen their ability to reduce tax avoidance and make sure everyone pays their fair share.
- A Non-domiciled person can live in a country that is not their legal home and it will mean they pay less tax. Under Labour, they’ll try to abolish tax breaks for them.
- Free breakfast clubs in every primary school.
- Since energy prices have soared, oil and gas companies have reaped the rewards. Labour will aim to close the loopholes in the windfall tax on oil and gas companies.
- Pensions will continue to increase 2.5% in line with wages or inflation, whichever is higher. It will be a huge relief for pensioners worried about their finances amidst the cost of living crisis.
Conservatives
- Tax lock: There will be no rise in income tax, corporation tax or VAT rates. Their aim is to give people more disposable income.
- Cut tax for workers by slicing 2p off Class 1 employee National Insurance (NI) contributions, taking it down to 6% by April 2027.
- They plan to completely abolish national insurance for self-employed people within the next five years.
- Abolish stamp duty for first-time buyers when purchasing a home up to £425k.
- An introduction of a new Help to Buy scheme where first-time buyers can get an equity loan of up to 20% towards a new-build home.
- They will introduce ‘Triple Lock Plus’. Pensions will continue to increase 2.5% in line with wages or inflation, whichever is higher. It will be a huge relief for pensioners worried about their finances amidst the cost of living crisis. They’ll also keep the 25% lump sum you can take at retirement age tax-free.
- Landlords that sell to existing tenants will get two years of temporary Capital Gains Tax (CGT) relief. This financial incentive will be appealing to landlords.
Green Party
- Put in place a new wealth tax of 1% on assets above £10m, and 2% on assets above £1bn to properly fund the NHS and green projects.
- The national insurance upper earnings limit will be removed, increasing tax contributions for higher earners. The party believes tax rates should not fall as income increases.
- To tax investment income at the same rate as earned income.
- Champion a fair system for taxing landowners.
- Committed to pensions continuing to increase 2.5% in line with wages or inflation, whichever is higher. It will be a huge relief for pensioners worried about their finances amidst the cost of living crisis.
- Minimum wage will increase to £15 an hour, regardless of age.
- Push for rent controls to be introduced, so there is a cap on rental income.
Liberal Democrats
- The personal allowance for income tax will be raised ‘once public finances allow’. Meaning you’ll have more money in your pocket.
- Pensions will be protected and rise 2.5% in line with wages or inflation, whichever is higher. It will be a huge relief for pensioners worried about their finances amidst the cost of living crisis.
- Tax cuts given to banks will be reversed.
- The digital services tax will increase from 2% to 6%, this cost could be passed onto customers.
- There will be additional investment in HMRC to tackle tax avoidance and evasion.
Reform UK
- They will increase the income tax threshold from £12,570 to £20,000. This means people earning £20,000 and under would not be taxed and would keep more of their income.
- You can earn £70,000 before being subjected to higher rates of tax.
- Residential stamp duty is to be cut to 0% for properties valued at less than £750k. Cut to 2% for properties from £750k to £1.5m, and cut to 4% for properties over £1.5m.
- Abolish Inheritance Tax (IHT) for all estates worth under £2m. This would mean more money would be protected from taxation and encourage the transfer of wealth between families.
- VAT on energy bills will be scrapped.
- Fuel duty will be dropped by 20p per litre.
- VAT will be reduced from 20% to 18%.
How Will These Policies Affect My Finances?
It depends on your individual circumstances. The policies for each party are different and could change something about your finances, from disposable income, investments, pensions, savings and more. All of the political parties’ policies and manifestos are available to read in full on their websites to make a more informed decision about your vote on the 4th of July.
Where Can I Get Help With My Finances?
If your main concern currently is to deal with your debts, we can help. Get your no-obligation debt advice today to fully understand your options and what debt solutions you would qualify for. You can start online anytime using our online debt advice tool. If you’d prefer, you can speak to the friendly and experienced debt advisors at Angel Advance. We help people daily with their financial goals, offering no-obligation debt advice day and night! Visit our online debt advice tool for help with debts, or contact our team via email, phone or WhatsApp today.
