Chancellor of the Exchequer Jeremy Hunt delivered the second major fiscal statement of his time as Chancellor on 15 March, during intense pressure to cut rising taxes and maintain financial stability in a struggling economy.
In his statement on 15 March, Jeremy Hunt delivered a “Budget of Growth” with some assurance by the Office for Budget Responsibility (OBR) who confirmed that the economy has proved more resilient than originally feared in the Autumn, and forecast a stronger than expected performance from the UK economy this year, with inflation set to continue to fall to 2.9% by the end of 2023. Jeremy Hunt added: “Our plan is working – inflation falling, debt down and a growing economy”, with the budget tackling the long-term strategy to deliver sustainable economic growth that will underpin the UK’s long term prosperity.
The Chancellor’s Spring Budget has taken a U-turn from supporting early retirement, now focusing on removing barriers to work for parents, the disabled and over 50s, encouraging “Returnerships” while improving access to childcare for the wider workforce and tackling the labour shortages head on.
The Chancellor also announced a £27 billion tax cut to boost business investment through a radical “fully expensing” policy, committed to spreading the benefits of economic growth “everywhere” and has also announced EPG and fuel duty freezes and a reform in childcare to help families with the cost-of-living. These updates are outlined in the complete guide which can be downloaded here.
Spring Budget statement highlights:
- Removal of the Lifetime Tax Allowance (LTA) from April 2023 and abolition from April 2024.
- Raise the Annual Allowance (AA) to £60,000 from April 2023.
- Increase the income level for the tapered Annual Allowance from £240,000 to £260,000.
- Increase Money Purchase Allowance (MPA) from £4,000 to £10,000 from April 2023.
- Full expensing a 100% First Year Allowance (FYA) to companies on the purchase of qualifying plant and machinery, with no expenditure limit, effective from 1 April 2023.
- Government funding of 30 free hours per week for working parents with children aged 9 months up to 3 years from April 2024.
- Freeze on energy rising costs for a further three months from April 2023, with the government maintaining the EPG at £2,500.
- Freeze on fuel duty for an additional 12 months.
To find out more about the highlights and access the complete Spring Budget statement click the link below.
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