Jeremy Hunt Budget 2023 LIVE: Key points and reaction as the Chancellor delivers a ‘budget for growth’ with a pensions and childcare shake-up
Chancellor Jeremy Hunt is today delivering his Spring Budget promised to be a ‘budget for growth’, as the Government moves to revitalise the country’s flagging economy.
The Office for Budget Responsibility will also publish its forecasts for UK growth, which will give the Chancellor an indicator of how much fiscal space he has to deliver growth-driving policies.
A key target for the Chancellor will be to get more Britons back into the labour market, falling a sharp rise in economic inactivity over the last three years. But the Treasury also faces pressure to help Britons at a time of stubbornly high inflation and a cost of living crisis.
Already confirmed is a three-month extension of the Energy Price Guarantee at its current level until June.
Many also expect an increase in the lifetime pension allowance to £1.8million, allowing people to save more for retirement without incurring taxation.
Fuel duty is confirmed as frozen, while the Chancellor will also likely extend free childcare support for younger children in an effort to get parents back into work – at an estimated cost of £40billion to the Treasury.
Corporation tax is planned to rise from 19 per cent to 25 per cent – despite calls from business chiefs to axe the hike.