Mar 16, 20232 min read

Spring Budget 2023 Overview

Updated: Jan 2

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