Jeremy Hunt will turn in his 2023 budget on Wednesday, setting out the government’s financial priorities for the year ahead.
The prime minister is expected to stick to his economic strategy, which includes tax increases and spending limits, to cut borrowing costs and keep inflation in check.
But his announcement includes extended energy bill support and more generous changes to pensions and child care to encourage more people to return to the workforce.This is expected to be one of the central themes of his statement
Here are the latest rumors and predictions ahead of the announcement:
What time is today’s budget?
The budget will be made on Wednesday, March 15th. The prime minister will read the budget speech to parliamentarians in the Houses of Parliament after the prime minister’s questions. around 12:30 pm.
It will be broadcast live on major news channels such as BBC News and Sky News, and details will be published on the Treasury website.
What will Jeremy Hunt announce?
Below is a breakdown of the key areas the Prime Minister will be responsible for today.
Utility bill support
Energy companies have been asked to prepare for the Energy Price Guarantee, which caps the average household bill at £2,500 a year for three months after it expires on 1st April.
The price guarantee was set to increase to £3,000 for the average household from April. This doubled the number of people unable to pay their utility bills from 1 in 10 for her to 1 in 5 for him. It remains at £2,500 through June.
Shadow Treasury Secretary Pat McFadden said it was “right” for the government to extend the energy price guarantee, but Labor had asked for it before. The Liberal Democrats said the move has not gone far enough.
Childcare
The Prime Minister is poised to announce a £4 billion package to expand the provision of 30 hours a week of free childcare to parents of 1- and 2-year-olds. This scheme is currently only available to parents with a 3-year-old and her 4-year-old.
The move comes as part of an effort to encourage parents with young children to return to work.
The amount parents can claim for child care on Universal Credit will increase from £646 to £950 for one child and from £1,108 to £1,630 for two children. TimesThis equates to an increase of almost 50%.
Hunt also plans to announce that parents using Universal Credit who claim child care assistance will receive an advance payment.
Currently, claimants must pay their childcare costs and then claim reimbursement. Charities warn the system risks pushing people into debt.
pension
Hunt is expected to increase the life annuity benefit in his budget speech. He hopes the change will encourage people to extend their careers into later life by allowing them to secure more tax-free income in retirement.
Lifetime benefit is the total amount you can accumulate from all your pension savings, excluding public pensions, without incurring taxes.
It is expected to rise from £1,073,100 to £1.8m, the 2010 level.
The prime minister will also raise the £40,000 cap on tax-free annual pension contributions to £60,000, ending a nine-year freeze.
Critics say the lifetime benefit hike will only benefit a small percentage of workers and is unlikely to entice retired workers over 50 to return to the workforce.
Corporate tax
Despite sustained pressure from some Tory lawmakers, Hunt plans to raise the corporate tax from 19% to 25% in April when the superdeduction expires.
It is understood that he will move on after being told it will cost £18bn to freeze interest rates.
The prime minister risks a backbench insurgency by announcing the move, including former prime ministers Liz Truss and Boris Johnson as opponents.
Other taxes
The prime minister plans to push ahead with plans for a higher alcohol tax announced for 2021, but has been delayed by six months until August.
He ruled out further extending the introduction of the scheme, even though he warned it could impose an undue financial burden on producers and the hospitality industry.
The new administration will tax drinks based on the amount of alcohol they contain, though the level of tariffs has yet to be confirmed.
Hunt is expected to freeze fuel taxes, as he has done for the past 12 years.
He will also try to encourage investment by reforming the capital deduction system and giving companies that invest greater tax incentives.
Budget 2023
Today is Prime Minister Jeremy Hunt’s first full budget. Expect many changes that will affect your money. I Let’s take a look at the flash points you see in financial statements.
Follow our live blog for all updatesincluding updates on plans to extend the Energy Price Guarantee.
Budget set to include £4bn expansion of free childcare For UK 1 and 2 year olds. Hunt plans to put parenting at the center of his pitch to “break down the barriers that keep people from working.”
in an interview with IPaul Johnson, Fiscal Institute In the UK, tax rates are likely to rise to record highs over the next two years and remain high for at least 30 years, he believes.
