Hunt unveils Spring Budget

Chancellor Jeremy Hunt announced in the 'Budget for Long Term Growth' today that, among a variety of other plans, the government will abolish the furnished holiday lettings regime. 

Multiple Dwellings Relief will be abolished from June after showing no evidence of promoting investment in the private rented sector.

As well as this, the Furnished Holiday Lettings tax regime will be abolished from April 2025, in the hopes of making it easier for local people to find a home in their community.

Roger Mortlock, chief executive of The Countryside Charity (CPRE) said "Air-BnB-style short-term lets have led to ghost towns and villages in some parts of the country, driving people out of the communities that depend on them."

He added that the government's plan to scrap tax breaks for short-term lets is a "step in the right direction."

Another announcement from the Chancellor is that the Household Support Fund will be extended until September 2024. 

The Fund allows the most vulnerable families to receive targeted support for essential food and energy costs. 

The government said they will also abolish the £90 fee for Debt Relief Orders so households struggling with problem debts can get the help they need, and extending the maximum period for Universal Credit budgeting advances from 12 to 24 months.

NHS projects will receive a £2.5 billion day-to-day funding boost for 2024/25 and £3.4 billion in capital investment over the forecast period.

Hunt has also announced funds for house building projects, including building more houses for young people. According to him, this investment will see nearly 8,000 houses being built and it will also transform Canary Wharf into a hub for life science companies.

The Chancellor additionally announced a package of support for north-east England, saying it will provide a package of support for the region potentially worth over £100 million. 

Finally, Hunt has introduced a vape levy and one-off increase in tobacco duty to come into effect in October 2026. 

There will also be a one-off increase in tobacco duty.

Responding to the Budget, Cllr Shaun Davies, chair of the Local Government Association, said: “We are pleased the Chancellor has extended the Household Support Fund (HSF), which has helped millions of households facing hardship. It is disappointing that we had to wait until the very last minute for an extension, and that it is only for a short period. Three-quarters of councils expect hardship to increase further in their area over the next 12 months.

“The Government needs to use the next six months to agree a more sustainable successor to the HSF. Councils need certainty and consistent funding to efficiently maintain the staff, services and networks that help our most vulnerable residents. Without this we risk more people falling into financial crisis as we head into winter.

“It is disappointing that the Government has not announced measures to adequately fund the local services people rely on every day. Councils continue to transform services but, given that core spending power in 2024/25 has been cut by 23.3 per cent in real terms compared to 2010/11, it is unsustainable to expect them to keep doing more for less in the face of unprecedented cost and demand pressures.

“Councils of all political colours are starting this financial year in a precarious position, and having to scale back or close a wide range of local services, so the continued squeeze in public spending in the years ahead is a frightening prospect for communities.

“This year also saw the sixth one-year settlement in a row for councils. Keeping them on a financial drip feed in this way has led to the steady weakening of local services. Councils need greater funding certainty through multi-year settlements to prevent this ongoing decline but also to ensure key national government policies – such as boosting economic growth, creating jobs and building homes - can be achieved.”