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Spring Budget 2023 Summary

Was it good for you?

Here's our Spring Budget 2023  summary, delivered on Wednesday 15th March by the Chancellor, Jeremy Hunt MP.  We've pulled out the key announcements below and you can read the full summary here Spring-Budget-Summary-2023-QFP.

The key announcements in the budget covered a wide range of ground:

· A major expansion in state-funded childcare was announced, with 30 hours a week of free childcare for eligible households in England, the provision being extended to children as young as nine months old. The phased plan aimed at removing barriers to work will be fully introduced in September 2025.

· The introduction of a package of measures aimed at encouraging people back to work including scrapping the work capability assessment, introducing a new voluntary employment scheme for disabled people and a £400 million scheme to make more support for mental and physical health available to workers with health problems.

· There was particular focus on the over-50s, with an increase in the number of people who get ‘mid-life MOTs’ from the Department of Work and Pensions and a new apprenticeship, called ‘Returnships’ for over-50s wanting to return to work in a new sector.

· The annual contribution limit on tax-free pension contributions was increased from £40,000 to £60,000 and the removal of the (55%) pension lifetime allowance tax charge from April 2023.

· The government’s energy price guarantee will be extended for the next three months ending in June 2023 keeping the typical amount households will pay at £2,500 a year. The rates for pre-pay energy meters will be brought in line with rates for those who pay be direct debit.

A new £9 billion policy of ‘full capital expensing’ for businesses was introduced initially for the next three years, this will allow businesses to write off all investment against tax bills.

If you have any questions about how the Spring Budget 2023 affects you, please get in touch.