Spring Budget 2023: Summary & Key Points

The contents of Chancellor Jeremy Hunt’s first Budget has been revealed in the House of Commons, with a particular emphasis on encouraging job seekers to re-enter the workforce and increasing business investment. A summary of the main announcements from the Spring Budget 2023, as well as confirmed measures, are provided below.

Taxation & Wages:

• Abolition of cap on amount workers can accumulate in pensions savings before paying extra tax
• Increase in tax-free yearly allowance for pension pot
• Extension of fuel duty freeze
• Reduction in alcohol taxes in pubs compared to supermarkets

Energy:

• Extension of government subsidies to limit household energy bills
• Investment to bring energy charges for prepayment meters in line with prices for direct debit customers
• Investment commitment of £20bn over next two decades on low-carbon energy projects, with a focus on carbon capture and storage
• Promise of more public funding for nuclear energy
• Funding of £63m to help leisure centres with swimming pool heating costs and energy efficiency improvements

Jobs & Work:

• Introduction of a new fitness-to-work testing regime to qualify for health-related benefits
• Funding for up to 50,000 places on new voluntary employment scheme for disabled people, called Universal Support
• Increased job support for lead child carers on universal credit
• Provision of more places on “skills boot camps” to encourage over-50s who have left their jobs to return to the workplace

Economy & Public Finances:

• Prediction that the UK will avoid recession in 2023
• Prediction of a shrinking economy this year before growth in the coming years
• Prediction of a fall in the UK’s inflation rate
• Forecast of underlying debt to be 92.4% of GDP next year, rising to 93.7% in 2024-25

Business & Trade:

• Increase in the main rate of corporation tax for businesses on taxable profits over £250,000
• 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
• Tax breaks and other benefits for 12 new Investment Zones across the UK
• Reduced paperwork and longer submission time for customs forms for international traders under streamlined rules

Other measures:

• Commitment to raise defence spending by £11bn over the next five years
• Introduction of prison sentences for those convicted of marketing tax avoidance schemes
• Provision of an extra £20m over the next two years for charities helping to prevent suicide
• Streamlined approvals process promised for new medical products
• Investment of £900m for a new supercomputer facility to help the UK’s AI industry

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