Seven key takeaways from today’s Budget
The Chancellor has announced his spring budget today and said the UK will now not enter a ‘technical recession’ this year.
It comes against a dramatic backdrop of high inflation, widespread strikes and the cost of living crisis.
The announcement has been pitched as the ‘back to work budget’ with measures to ensure more people return to the office nearly two years after the end of the pandemic.
He told the Commons: ‘We remain vigilant, and will not hesitate to take whatever steps are necessary for economic stability.
‘Today the Office for Budget Responsibility forecast that because of changing international factors and the measures I take, the UK will not now enter a technical recession this year.’
These are the key talking points from his announcement in Parliament today.
Spring budget 2023: Key points
- Seven key takeaways from today’s Budget
- Energy price guarantee to remain at £2,500 for the next three months
- 30 hours of free childcare for every child over the age of 9 months
- Pension changes coming in 2023 – from payment rises to tax cuts
To get the latest from the budget announcement visit Metro.co.uk's Metro's Budget news hub.
Childcare
Parents working 16 hours a week, with children aged nine months to five years will get 15 hours free childcare to encourage more carers to enter the workforce.
The Government will increase funding paid to nurseries providing free childcare under the hours offer by £204 million from this September and rising to £288 million next year.
Pensions
The lifetime allowance – the total amount workers can accumulate in their pension savings before paying extra tax – has been abolished.
Mr Hunt hopes it will stop 80% of NHS doctors from receiving a tax charge.
The pensions annual tax-free allowance will also rise by 50% from £40,000 to £60,000.
Energy price guarantee
The energy price guarantee which spared millions the pain of rocketing fuel bills, will remain until June.
The Chancellor had intended to stop the Government’s subsidy for energy bills from April, but now the annual household energy bills – set to have swollen to more than £3,000 in April – will remain capped at £2,500.
The cost of a pint
The ‘Brexit pubs guarantee’ will ‘significantly increase the generosity of draught relief’, which Hunt claimed could not be done when the UK was in the EU.
Addressing Parliament, he told MPs: ‘From August 1 the duty on draught products in pubs will be up to 11p lower than the duty in supermarkets, a differential we will maintain as part of a new Brexit pubs guarantee.
‘British ale may be warm, but the duty on a pint is frozen.’
Fuel prices
The 5p fuel duty cut will be extended for 12 months, chancellor Jeremy Hunt has announced.
Rishi Sunak temporarily cut the fuel duty rate from 57.95p per litre to 52.95p when he was chancellor to keep soaring pump prices down last year.
This was due to end later this month, adding 5p per litre to petrol and diesel, but drivers can breathe a sigh of relief.
Delivering his spring Budget in the House of Commons, Mr Hunt confirmed he would also freeze fuel duty for the 13th consecutive year – saving drivers £100 a year.
Defence
Defence spending will rise to £11bn over the next five years.
Canary Wharfs across the UK
There will be 12 new investment zones across the UK.
Jeremy Hunt labelled these areas, which will be spread across the UK, as ’12 potential Canary Wharfs’.
Potholes fund
A further £200 million will be allocated to fix potholes across the country.
The Treasury had already allocated £500 million for the so-called Potholes Fund, but councils in England are now being promised another influx of cash.
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