The Spring Budget 2023 announcements by the Chancellor of the Exchequer Jeremy Hunt are highly anticipated in terms of what they will mean for citizens and businesses alike.
One of the main topics to be addressed is taxation, with reports suggesting that there may be a shift towards personal tax increases as well as potential changes to corporation tax.
With Brexit now fully in effect, the budget may provide an insight into how the government intends to manage the economy and national finances in the coming years.
In the spring budget of 2023, energy support will continue.
Households across the country are set to benefit from the Energy Price Guarantee (EPG) for a further three months.
This means that prices on their energy bills will remain lower than Ofgem’s price cap for this period, helping them save money and manage their finances.
However, it’s important to note that the EPG only applies to unit prices and not standing charges.
Standing charges remain determined by Ofgem, so this announcement won’t affect them.
Find out more about the Energy Price Guarantee and what it means by visiting the gov.uk website.
Freeze to Fuel and Alcohol duty
Another announcement from the budget saw a freeze on fuel and alcohol duty, which drivers and responsible drinkers across the UK have welcomed.
This freeze relieves many small businesses, including pubs, bars and supermarkets, already struggling due to COVID-19 restrictions.
The spring budget also announced an extension of discounts in stamp duty for those buying their first home, providing much-needed support to the housing market.
These discounts are expected to boost sales of new homes and, in turn, stimulate economic growth.
The spring budget also extended grants for small businesses and self-employed workers, offering a lifeline during this difficult period.
This spring budget was one of the most comprehensive packages delivered by the government in recent years, providing much-needed relief and support to individuals, businesses and communities.
News that will be welcomed by many parents will be the hour extension for free childcare for children over 9 months of age.
The extension has been increased to 30 hours free childcare which will be implemented in two segments.
in April 2024, 15 hours will be available to working parents with children aged two.
Fast forward to September 2024, a further 15 hours will be available to parents with children aged 9 months to 3 years old.
Not only will the hours be increased, but so will the funding to nurseries. This will rise to £288m next year from this September.
Chancellor Jeremy Hunt stated that this is the “biggest transformation in childcare in my lifetime”.
In other news
Other areas which will be affected include spending on public services, welfare and infrastructure.
There have also been rumours of changes to pensions, although it remains to be seen if these come to fruition.
The budget focuses heavily on green initiatives and climate change, as the government continues its efforts to become a more sustainable economy
The budget announcements are likely to have a significant impact on the UK economy and it is highly recommended that anyone with investments or businesses should stay informed in order to make sure they are fully prepared.
In conclusion, the Spring Budget 2023 from the UK Government was an interesting and potentially game-changing set of announcements.
With increased taxation, changes to spending, and green initiatives all on the table – it looks set to have a major impact on the economy both now and in the future.
For any updates on Spring Budget 2023, stay tuned.
This guide is an informative piece and does not constitute tax advice for individual matters.