Mar 16, 20232 min read

Spring Budget 2023 Overview

Updated: Nov 23, 2023

On 15 March 2023 the Chancellor, Jeremy Hunt, delivered the Spring Budget. The key announcements, and how they affect you, are summarised below.

INDIVIDUALS

The current limit of £1,073,100 on tax-free pensions savings will be abolished
Annual tax-free pension allowance will rise to £60,000 - a 50% increase
30 hours of free childcare for working parents in England expanded to cover one and two-year-olds
Universal credits payments for childcare support to be paid up front instead of in arrears
Cap on childcare credits of £646-a-month per child raised to £951
£600 “incentive payments” for those becoming childminders
Health-related benefits will require new fitness-to-work testing regime to qualify
Universal Support - a new voluntary employment scheme will be established for disabled people in England and Wales
Increased requirements to seek work and increased job support for lead child carers on universal credit
£63m investment to encourage people over 50 back to work, “returnerships” and skills boot camps

Main rate of corporation tax on taxable profits over £250,000, confirmed to increase from 19% to 25%
Businesses will be able to offset 100% of capital expenditure on plant machinery against their profits to reduce tax bills
An “enhanced credit” has been introduced for SME’s that spend 40% or more of their total expenditure on R&D. Companies able to deduct investment in new machinery and technology to reduce taxable profits
12 new Investment Zones across the UK to receive tax breaks funded by £80m each over the next five years
International traders given longer to submit customs forms under streamlined rules, with a reduction in paperwork
A relaxation of immigration rules to ease labour shortages for five roles in construction sector
£400m for mental health and musculoskeletal workplace support to help people remain in the workplace

Extension of the 5p cut in fuel duty for 1 year. Fuel duty will also be frozen for the next 12 months
Government subsidies limiting typical household energy bills to £2,500 will be extended until the end of June
Energy costs for prepayment meter customers will be aligned with comparable direct debit customer charges
Commitment to invest £20bn over next 20 years on low-carbon energy projects, with a focus on carbon capture and storage
Nuclear power will be classed as “environmentally sustainable” to help grow investment in the sector.
Public leisure centres and pools will share a £63m fund to help with energy costs and investment to become more energy efficient