The Chancellor of the Exchequer, Jeremy Hunt MP has delivered the Spring Budget 2023.
The Spring Budget 2023 was focussed on achieving 3 of the Prime Minister’s 5 priorities:
Halving inflation
Growing the economy
Reducing national debt
The majority of policies were structured within the Chancellor’s 4 pillars of industrial strategy for delivering long-term sustainable growth:
- Everywhere
- Enterprise
- Employment
- Education
Announcements made included:
- Freezing fuel duty and maintaining the 5p cut for a further 12 months.
- Introducing “full expensing”, meaning companies can claim 100% capital allowances on qualifying plant and machinery investments for the next three years.
- Investing £11bn over the next 5 years to the national defence budget
- Creating 12 new Investment Zones where successful applications will be able to access £80 million of support for a range of interventions including skills, infrastructure, tax reliefs and business rates retention.
- Extending the energy price guarantee for a further 3 months.
- Increasing access to state-funded childcare for all parents working 16 hours or more.
- Increasing the pensions annual tax-free allowance by 50% from £40,000 to £60,000.
- Abolishing the Pensions Lifetime Allowance.
The full statement from the HM Treasury can be found here and the Chancellor’s Speech can be found here.
General Secretary's comment
"This budget is a “budget for growth” and aims to attract older people back to work or discourage them from retirement. The increase in the annual tax free allowance and Pensions Lifetime Allowance abolition will be good news for those still working who can afford to make higher payments into their pension. The triple lock state pension and 10.1% increase on public sector pensions on an average Civil Service Pension at only £9,180 will help, but with the ongoing cost of living crisis and food inflation around 16%, assistance for those less well-off would’ve been welcome. The extension to the energy price guarantee will help a little and pensioners who often help their families out with costs or childcare may welcome the increased access to free child care. Retired people also help to grow the economy by remaining active and engaged and investment in public transport would’ve helped with this."
Image: Prime Minister Rishi Sunak hosts Cabinet meeting 15/03/2023. London, United Kingdom.
The Chancellor of the Exchequer, Jeremy Hunt speaking at the Cabinet Meeting prior to presenting his plans for the economy, including taxation and spending, in the Budget.
Picture by Rory Arnold / No 10 Downing Street
