Spring budget summary - at a glance

Yesterday (15th March 2023), Chancellor Jeremy Hunt unveiled his first Budget in the wake of rising energy bills and a cost of living crisis.

Here are the key points at a glance:

Taxes

*                       The cap on the amount workers can accumulate in pensions savings before paying extra tax has been abolished

*                       After a 9-year freeze The Tax-free yearly allowance will rise from £40,000 to £60,000

*                       The 5p cut to fuel duty on petrol and diesel will be kept for another year

*                       Alcohol taxes will rise in line with inflation from August, although there will be new reliefs for pubs

*                       Tax on tobacco to increase by 2% above inflation, and 6% above inflation for hand-rolling tobacco

Energy

*                       The Government subsidies limiting typical household energy bills to £2,500 p/a will be extended until the end of June

*                       4m households currently on prepayment meters will benefit from a £200m fund to bring energy prices into line with prices for customers paying by direct debit

*                       There will be a £63m fund available to help leisure centres with rising swimming pool heating costs

Work

*                       Free childcare in England will be extended to 30 hours for working parents for one and two-year-olds

*                       Families on universal credit will 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

*                       £63m for programmes to encourage retirees over 50 back to work, "returnerships" and skills boot camps

*                       Immigration rules to be relaxed for five roles in construction sector, to ease labour shortages

Economy

*                       The OBR predicts the UK will avoid recession but the economy will shrink by 0.2% in 2023

*                       Growth of 1.8% predicted for next year, with 2.5% in 2025 and 2.1% in 2026

*                       UK's inflation rate predicted to fall to 2.9% by the end of 2023

*                       Underlying debt forecast to rise to 93.7% in 2024

Business

*                       Main rate of corporation tax confirmed to increase from 19% to 25% for companies with profits between £50,000 and £250,000

*                       Companies can now deduct investment in new machinery and technology to lower their taxable profits

*                       Tax breaks and other benefits for 12 new Investment Zones across the UK, funded by £80m each over the next five years

Have a question about how the Budget impacts yourt business then contact one of our team.