The 2023 Spring Budget at a glance
Britain will avoid recession. The economy will shrink by 0. per cent this year but then grow 1.8 per cent in 0 4. Inflation is forecast to fall to .9 per cent by the end of this year from its current level of 10 per cent.
Living standards will take the biggest hit this year and next since records began in 1956. House prices will fall 10 per cent in the next two years.
The tax burden will hit record post-war levels of 37.7 per cent of GDP – more than £1trillion.
TAX AND BENEFITS
The £1million pension lifetime allowance was scrapped, and the annual tax-free cap was raised from £40,000 to £60,000. Working parents will be offered up to 30 hours of free childcare for children aged nine months and over from September 0 5, worth £6,500 per year.
The average household will save £160 on their energy bill after the Government’s subsidy scheme was kept at the same level for another three months.
A freeze to duty on fuel will shield motorists and businesses from a £5billion tax hike, saving the average driver £100 per year.
Tax on draught beer in pubs will fall 11p but the cost of a bottle of wine will rise 45p.
Tax on cigarettes jumps again, taking the cost of a pack of 0 to over £13.
A corporation tax rise from 19 to 5 per cent for large firms was confirmed, raising £18billion. Businesses will get £9billion of tax relief if they invest in IT, plant and machinery to soften the blow. Britain’s pothole fund will be boosted from £500million to £700million next year to fix four million potholes.
A £300million back-to-work blitz will provide advice and support to help the middleaged and the long-term sick back into work with work ‘MOTs’ and skills boot camps. A dozen new ‘Canary Wharf-style’ investment zones will get £80million funding each to boost enterprise in left-behind areas.