From halving inflation to growing the economy, the Spring Budget 2023 is here to outline what the next steps are towards a stronger future for Britain’s economy after a turbulent winter.
Chancellor Jeremy Hunt has revealed the first Budget of the year in the House of Commons, with many worrying about the Energy Price Cap that was due to end in April and the continuously rising costs of living.
The government have subsided limiting typical household energy bills to £2,500 per year and is extending this for three months – taking households to July, when the weather will hopefully allow for a lesser need for heat. They have also shown a commitment to invest £20bn over the next two decades on low-carbon energy projects, while pledging £63m to help leisure centres with rising swimming pool heating costs.
For many parents, the Spring Budget was a great one as the government have said they will provide 30 hours of free childcare for working parents in England to be rolled out in stages from April 2024.
The Office for Budget Responsibility predicts the UK will avoid recession in 2023, with the economy unfortunately still shrinking by 0.2%, however, the UK’s inflation rate is predicted to fall to 2.9% by the end of this year, down from 10.7% in the last three months of 2022.
For large businesses, the main rate of corporation tax, paid by companies on taxable profits over £250,000, has been confirmed to increase from 19% to 25%. Companies will be able to deduct investments in new machinery and technology to lower their taxable profits, alongside tax breaks and other benefits for 12 new Investment Zones across the UK will be funded by £80m each over the next five years.
In addition to the above, there is a commitment to raise defence spending by £11bn over the next five years, an extra £200m will be pledged to help local councils in repairing potholes and £900m for a new super computer facility, to help the UK’s AI industry.
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