Spring Budget 2023 Highlights

Chancellor Jeremy Hunt has drawn up a package of measures aimed at helping people and businesses survive the cost of living crisis, boosting economic growth and reducing government debt.

Here is a summary of the main announcements and new measures announced today by the Chancellor.

Growing our economy:
• According to the Office for Budget Responsibility the UK is expected to avoid a technical recession in 2023.
• For every £100 spent on Research and Development, eligible small and medium sized companies will be able to claim £27 back.
• Tax relief for theatres, orchestras, and museums & galleries will stay at rates of 45%-50% until 2025.
• Disability Benefit Reforms will fund a new Universal Support programme to help disabled people, and those with long-term help conditions to find jobs and stay in work.
• From next year qualifying foster care givers will see their tax free allowance rise from £10,000 to £18,000.
• Increase the pensions annual tax-free allowance from £40,000 to £60,000.
• The lifetime pensions allowance has been abolished.
• Working families will have access to 30 hours free childcare per week for children aged between 9 months and 4 years.
Cost of living:
• Office for Budget Responsibility expects inflation to fall to 2.9% by end of 2023.
• Jeremy Hunt has confirm the Energy Price Guarantee will be held at £2,500 until June 2023.
• The planned increase of 11p in fuel duty this year is cancelled.
Reducing debt:
• The government is on track to reduce debt, with underlying debt to be 92.4% of GDP by next year, falling every year after until 2027-28.
• Underlying debt in three years’ time forecast to be lower than it was in the autumn of last year.