The Government’s Spring Budget 2023
Today the Chancellor, Jeremy Hunt announced the government’s spring budget.
The main points announced were:
- The energy price guarantee will remain for 3 months.
- From the 1st August, duty on draught in pubs will be up to 11p lower.
- Fuel duty will be frozen and the 5p reduction will remain for a further year.
- Corporation Tax will increase from 19% to 25% meaning that firms that make over £250,000 will pay 25% tax on their profits from April.
- Small or medium sized businesses will be able to claim £27 for every £100 they spend if they spend 40% or more of their total expenditure on Research and Development.
- Disabled benefit claimants will always be able to seek work without fear of losing financial support.
- Sanctions will be applied to those who claim Universal Credit and fail to meet strict work-search requirements or choose not to take up a reasonable job offer. For those working low hours, he says the Administrative Earnings Threshold will rise from the equivalent of 15 hours to 18 hours at the National Living Wage.
- The pensions annual tax-free allowance has increased from £40,000 to £60,000 and will abolish the Lifetime Allowance which was previously set at £1.07m.
- Childcare reforms including incentive payments of £600 for childminders joining the profession or £1,200 if they join through an agency, and 30 hours of free weekly childcare to cover children under the age of 3 for households where both parents are working.
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