By Niamh Tracey | 15 March, 2023

Spring Budget Headlines

Please find below a summary of the key takeaways from the Chancellor’s Spring Budget. This list is by no means comprehensive, nor exhaustive on the details. It is designed to give you a succinct snapshot of the headlines.

Cost of living support

  • Upcoming Energy Price Guarantee rise to £3,000 has been cancelled. The price cap remains at £2,500 for another three months. Another rise is not envisaged as the wholesale price continues to fall
  • 5p Fuel Duty cut introduced by Rishi Sunak in March 2022 has been extended for another year
  • £63m fund announced to help leisure centres and pools with energy costs
  • £100m extra funding for charities facing soaring costs

Business incentives

  • For companies only, the Chancellor has set aside £9bn to fund a “full capital expensing” scheme. Companies will be able to claim 100% capital allowances on qualifying plant and machinery investment. 100% AIA’s previously limited spend to £1m per annum – this remains in place for sole-traders and partnerships. The new incentive is planned to run for three years
  • He has also extended his “Draught Relief” so that duty paid in pubs will be up to 11% lower than elsewhere, such as supermarkets
  • An annual £1m prize for the next ten years for the most innovative research in the AI field

Employment

  • A new apprenticeship for over-50’s, called “Returnerships” to encourage those wishing to return to work in a new sector
  • Pensions – from 6th April 2023, the annual contribution limit will be increased from £40,000 to £60,000 and the current pension lifetime cap will be abolished. His stated motivation was to prevent workers from being pushed out of the workplace for tax reasons

Childcare

  • Parents of children aged nine months to three years will be offered 30 hours per week of free childcare during term time, providing both parents are working at least a 16-hour week
  • There will be a phased introduction of the plan, with 15 hours provided from April 2024, increasing to the full 30 hours by September 2025
  • Those claiming Universal Credits will now be able to access childcare funding up front, rather than in arrears and the amounts available will increase

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