Chancellor of the Exchequer Jeremy Hunt MP presented his Spring Budget to Parliament today. His first full Budget with OBR forecast, it comes amid the continuing cost-of-living crisis as inflation hits a record high of 10.1%.
Below are some key points from the Budget:
The OBR forecasts that the UK will not enter a technical recession this year and will grow by 2% annually to 2027.
Inflation is forecasted to fall to 2.9% by the end of 2023.
The Energy Price Guarantee will remain at £2,500 for the next three months until July 2023.
Fuel duty will remain frozen and the 5p cut to diesel and petrol will be retained for another 12 months.
From 1 April, a ‘Brexit Pubs Guarantee’ will be introduced to make draught products in pubs up to 11p cheaper than supermarkets.
Corporation Tax on companies earning profits above £250,000 will rise to 25% in April, as expected.
The super-deduction scheme, which expires on 1 April, will be replaced by a capital expensing programme via which companies can deduct investment costs in IT & machinery in full from their taxable products.
The pensions annual tax-free allowance will rise from £40,000 to £60,000. The maximum Lifetime Pension Allowance will be abolished.
Departmental spending will rise by 1% a year after the next general election.
A £63 million fund to help swimming pools with high energy costs will be created.
Nuclear power will be considered “environmentally sustainable”, giving it access to renewable investment opportunities.
12 new investment zones will be created across the UK. At least one will be delivered in Northern Ireland.
£130 million will be allocated to the Northern Ireland Executive through Barnett consequentials.
£3 million will be allocated to extend the tackling paramilitarism taskforce.
£40 million will be given to enhance Higher and Further Education participation in Northern Ireland.