Budget 2024: Hunt confirms purchase of nuclear sites and east London homes funding

Chancellor Jeremy Hunt has used what is expected to be his final budget before the next general election to cut a range of personal and property taxes – as well as increasing the threshold for VAT.

In a speech to parliament lasting more than an hour he also confirmed that the government had acquired the Wylfa nuclear power station site in Anglesey from Hitachi in a £160m deal. The Japanese industrial giant suspended its plans to construct a new power station at Wylfa in 2019. The deal also includes the purchase of Hitachi joint venture Horizon Nuclear Power’s Oldbury site in Gloucestershire.

Budget documents said the site acquisitions came against the backdrop of the government’s commitment to exploring the development of a further new large-scale nuclear reactor project.

Hunt told MPs that Great British Nuclear would also begin the next phase of the Small Modular Reactor selection process, with six invited companies being given until June to submit initial tender responses.

Elsewhere, the package included more than £240m to build nearly 8,000 homes in east London – at Barking Riverside and Canary Wharf, alongside a new life sciences hub. 

Hunt also announced a £20m investment in social finance to build up to 3,000 community-led homes and £4m for the Euston Housing Delivery Group to support plans to deliver up to 10,000 new homes around the HS2 terminus.

Earlier this week Downing Street trailed plans to cut National Insurance, and Hunt delivered a reduction in rates from 10% to 8% for employees, and a reduction in the main rate for the self-employed from 8% to 6%.

Other tax measures set out this afternoon include increasing the VAT threshold for businesses from £85,000 to £90,000 – which Hunt said would “bring tens of thousands of businesses out of paying VAT altogether and encourage many more to invest and grow”.

Hunt also announced a cut in the higher rate of Capital Gains Tax for property disposals, reducing it from 28% to 24%. The lower rate will remain unchanged at 18%. The chancellor said that both the Treasury and the Office for Budget Responsibility had concluded that the move would result in more transactions and boost revenue.

Peter Hogg, UK cities director at Arcadis, said Hunt’s speech contained “little for the built-environment sector” but acknowledged there were positive elements.

“The North Eastern Trailblazer devo deal is welcome, as is more money for levelling up in culture projects and an extension to the towns fund,” he said.

“A £242m commitment to Docklands 2.0 is also a symbolic recognition that London is in the levelling up mix too. Measures to encourage life sciences investment is welcome.

“Looking into the detail of the ‘Red Book’ things are more promising; the government’s plan for growth brings forward a number of measures that business will welcome, including extensions to full expensing, commitment to further planning reforms, more support to the strategic manufacturing sectors and boosting growth through investment zones.

“Commitments to a support a private sector-led HS2 station solution at Euston is very welcome, as is the commitment to the next stage of East West Rail. It was a shame for our cities’ central activity zones, however, to see tax-free shopping once again absent.”

Mike Burton, land director at Metis Homes, said the budget was “rather disappointing” and “did very little for the housing industry as a whole”.

He said: “The lack of any incentive for those trying to get onto the housing ladder is a great loss. That is the area we see as most challenging in the housebuilding industry, and most likely to hamper growth.”

Bob Anstey, nuclear sector director at Costain, said the civil nuclear industry would be “encouraged” by the signals being sent by the chancellor.

“To meet the UK’s domestic energy requirements over the coming decades, accelerating our ability to generate safe, low carbon and sustainable electricity is essential,” he said.

“At the same time, there are pressing infrastructure and skills shortfalls that need to be addressed to ensure these initiatives land on fertile ground.”