Chancellor Rachel Reeves has unveiled a comprehensive budget filled with various announcements relating to taxes, spending, wages, and pensions, which could have a direct impact on individuals and their finances.

Starting in April, the minimum wage will see an increase across the UK. Specifically, the apprentice rate for eligible individuals under 19 or those over 19 in their first year of apprenticeship will rise from £6.40 to £7.55 per hour. While these increases are smaller in percentage compared to the past two years, they coincide with a slowdown in price rises.

In addition to the wage hike, many employers will face higher National Insurance (NI) contributions for their workforce. However, employee NI rates will remain unchanged. Businesses have expressed concerns that these additional costs could hinder job creation and salary increases. Some may opt to increase prices to offset these expenses.

The cap on single bus fares in many English routes will increase from £2 to £3 by 2025. In contrast, fares in London and Greater Manchester will remain lower due to differing funding arrangements.

Fuel duty has been maintained at its current level since 2011, with a 5p reduction per litre also extended. The inheritance tax rate is set at 40% on assets exceeding £325,000, but from April 2027, inherited pensions will be included in this calculation. This change is expected to bring more estates into the inheritance tax bracket due to unspent pension savings at the time of death.

Furthermore, exemptions for certain properties such as farms and family businesses will begin to disappear by April 2026, imposing taxes on assets valued over £1 million.

Capital gains tax (CGT) rates are set to increase as well: basic rate taxpayers will see it rise from 10% to 18%, while higher-rate taxpayers will see an increase from 20% to 24%. These rates now align with those applied to property sales.

Increases in tobacco taxes are also notable; a rise of 2% above inflation for regular tobacco products and 10% above inflation for hand-rolling tobacco has been announced. Starting October 2026, a flat duty of £2.20 per 10ml of vaping liquid will be implemented.

A significant policy change involves private school fees; from January 1, 2025, VAT at a standard rate of 20% will be added. This will depend on individual school decisions regarding fee adjustments.

Additionally, benefits are set to rise by 1.7% in April due to inflation adjustments. Universal credit recipients can expect specific increases based on individual circumstances.

The state pension is projected to rise by 4.1%, but millions may lose winter fuel payments due to government cuts. Income tax thresholds are set to remain frozen until they begin rising alongside inflation in 2028.

This budget outlines various measures that may affect many aspects of daily life and finances moving forward.