Spring Budget 2023
In his first full Budget, Jeremy Hunt briefly outlined the Office for Budget Responsibility’s latest forecasts. These show that inflation will more than half this year, the economy will narrowly avoid recession and debt is predicted to fall in the medium term.
The Chancellor was keen to show how his announcements align with the Governments four ‘pillars’ for growth of enterprise, education, employment and everywhere.
To boost innovation and business investment the Chancellor announced:
- Changes to capital allowances announcing a full expensing policy for plant and machinery for 3 years from 1 April 2023, worth £27bn to businesses over 3 years
- A £500m per annum support package for R&D intensive businesses
- Reforms to tax reliefs for the creative sectors
- 12 new investment zones across the UK
- £400m for new levelling up partnerships for 20 areas in England most in need of levelling up
The Chancellor set out a comprehensive plan to help people move into work, increase their hours and extend their working lives. Measures include:
- Pension reforms designed to remove the barriers to remaining in the workplace, a new ‘Returnerships’ apprenticeship targeted at the over 50s to refine existing skills programs to make them more accessible to older workers and a midlife MOT to ensure people get the best possible financial, health and career guidance well ahead of retirement
- Reforms to childcare that will remove barriers to work for nearly half a million parents with children under 3 in England, not working due to caring responsibilities
- Disability and benefit reforms
In a move to ease the squeeze on household budgets from the cost-of-living crisis, the Chancellor also announced that the rates of fuel duty will remain frozen for 12 months and the Energy Price Guarantee will be maintained at £2,500 for the typical household across the UK for an additional 3 months.
To remove inequality in the energy market the Government will introduce measures to bring charges for comparable direct debit and prepayment customers into line. There will also be additional support for public swimming pools and Charity and Community organisations across England most at risk due to increased demand from vulnerable groups and higher costs.
Our experts have been busy dissecting all the information from the Chancellor’s statement and have created useful, jargon free summaries in the boxes below, to outline how today’s announcements affect you and your business. Or you can read the full Spring Budget overview using the link below.
Our Spring 2023 Tax Guide can be viewed below by clicking on the link.