At 3:00pm on 15th March 2023 Chancellor Jeremy Hunt unveiled the innards of his first Government Budget in the House of Commons.
His top priority proves to be encouraging those who have left their jobs to return to the labour force, and making action to boost business investments.
Information sourced from BBC.
Read on below for further summaries.
Taxation and wages
- The rule stating that workers have capped pension savings over their lives before having to pay increased tax is to be abolished.
- 9 year Frozen tax pots will now allow tax-free yearly pension pots to rise from £40,000 to £60,000.
- Fuel duty frozen – the 5p cut to fuel duty on petrol and diesel, due to end in April, kept for another year
- In line with inflation in August the Alcohol taxes will rise.
- Tax on tobacco to increase by 2% above inflation, and 6% above inflation for hand-rolling tobacco.
Energy budgets
- Government subsidies limiting typical household energy bills to £2,500 a year extended for three months, until the end of June.
- In line with sustainability focused goals the government have committed to invest £20bn over next two decades on low-carbon energy projects, with a focus on carbon capture and storage.
- Nuclear energy to be classed as environmentally sustainable for investment purposes, with promise of more public funding.
- £63m budget will be granted to help leisure centres with rising swimming pool heating costs.
Jobs and work
- Working parents in England with children between 1 to 2 years old will be allowed of a budget 30 hours free childcare, to be rolled out in stages from April 2024.
- Universal credit – £646-a-month per child cap raised to £951. Families on to receive childcare support up front instead of in arrears.
- £600 “incentive payments” for those becoming childminders, and relaxed rules in England to let childminders look after more children.
- A new voluntary scheme called Universal Support will allow disabled people In England and Wales to become employed.
- Tougher requirements to look for work and increased job support for lead child carers on universal credit.
- £63m will be invested into programmes to encourage retirees over 50 back to work, creating “returnerships” and skills boot camps.
- To ease labour shortages Immigration rules to be relaxed.
Economy and public finances
- Office for Budget Responsibility predicts the UK will avoid recession in 2023, but the economy will shrink by 0.2%.
- Growth of 1.8% predicted for next year, with 2.5% in 2025 and 2.1% in 2026.
- Compared to 10.7% in the last 3 months of 2022 the UK’s inflation rate is predicted to fall to 2.9% by the end of this year.
- Underlying debt forecast to be 92.4% of GDP this year, rising to 93.7% in 2024.
Business and trade
- Main rate of corporation tax, paid by businesses on taxable profits over £250,000, confirmed to increase from 19% to 25%.
- Companies with profits between £50,000 and £250,000 to pay between 19% and 25%.
- Companies able to deduct investment in new machinery and technology to lower their taxable profits.
- benefits for 12 new Investment Zones across the UK, including Tax breaks and more funded by £80m each over the next five years.
- Reduced paperwork for international traders, who will also be given longer to submit customs forms under streamlined rules.
Other budgeting measures
- £11bn to be spent on raising defence over the next five years.
- Prison sentences for those convicted of marketing tax avoidance schemes.
- local councils in England to be granted £200m this year to help repair potholes.
- An extra £10m over next two years for charities in England helping to prevent suicide.
- Streamlined approvals process promised for new medical products.
- £900m investment for new super computer facility, to help UK’s expanding AI industry.
