Chancellor Reeves said the government would take steps to transform the Apprenticeship Levy into a more flexible Growth and Skills Levy by investing £40mn, which she said will help to deliver new foundation and shorter apprenticeships in key sectors.
While sectors outside of financial services were singled out for mention in the 1 hour and 20 minute long speech, the government said it would be open for consultation.
Page 71 of the document stated: "The reformed levy will be developed in partnership with employers, providers, and learners.
"Skills England will take the time to consult with a wide range of partners to ensure that levy‑funded training meets the needs of employers, providers, and learners, and secures good value for money."
As part of the increases to the national minimum wage, the government announced the 18-20 NMW will rise by £1.40 per hour - the largest increase on record - and marks the first step towards a single adult rate.
4) CGT and IHT changes
While advisers have taken to social media to comment on a rise in requests from clients for help with IHT and CGT planning, accountancy and tax specialists have warned that adviser business owners may need to take their own advice, following uplifts to the CGT rates and limits on business property and Aim investment relief.
As a reminder, the lower rate of CGT will rise from 10 per cent to 18 per cent, and the higher rate from 20 per cent to 24 per cent.
Simon Rothenberg, a partner at accountancy Blick Rothenberg, said of the CGT changes: "Rachel Reeves wants investment, but not from individuals, penalising them for making capital gains.
"With IHT changes – BPR (and AIM investment relief) limited to £1mn and then 20 per cent relief thereafter, he asked: "Will it encourage even more planning for business owners - or will some just decide it is not worth the effort in their later years and sell/shutter the business?
"That is if the CGT changes don't scupper that plan too."
5) Close companies, company cars and benefits in kind
As part of the government's plans to crack down on tax loopholes, this Budget unveiled measures to prevent business owners and shareholders in businesses from benefiting from corporate perks.
In a supporting document published alongside the Budget, the government issued a policy paper called 'Close company shareholders — anti-avoidance measure'.
This will involve amending the loans to participators regime is to deter companies from making untaxed loans to their participators or allowing them otherwise to extract company funds untaxed, rather than paying wages, dividends or other income chargeable to tax.
By making sure that shareholders cannot extract funds, untaxed, from close companies as of October 30, the government expects to make £5mn in each of every tax year til the end of their term, except for £10mn anticipated in 2025-26.
