How will today's Budget announced affect North Yorkshire?
Chancellor Jeremy Hunt is giving a full budget statement today
Last updated 16th Mar 2023
Chancellor of the Exchequer Jeremy Hunt will unveil his Budget today as the country faces high inflation and a cost of living crisis.
Yesterday the Chancellor said: “The jobs market remains strong, but inflation remains too high.
“To help people’s wages go further, we need to stick to our plan to halve inflation this year.
“Tomorrow at the Budget, I will set out how we will go further to bear down on inflation, reduce debt and grow the economy, including by helping more people back into work.”
Paul Dixon is from Fortus Accountants and Business Advisors in Scarborough. He said: "I don't think there's going to be too many headline changes I don't think to the usual tax rates or national insurance rates. I think it's going to be very much set in the scene on the state of the country's economy at the moment. I think the outlook is potentially not as bleak as it was this time last year.
"There will be help for those who need it as the cost of living crisis rumbles on. The energy support scheme on the 31st of March, the price increase was going to go to £3,000 from £2,500. I think he's probably going to extend that £2,500 help for a further three months, which is a help.
"Those on pre-payment meters are that need the help most. They're the ones that are the most exposed to this cost of living crisis. The most vulnerable do need the most help without a shadow of a doubt.
"They're desperately trying to get more people back to work whether it be people struggling with childcare costs where it's simply not viable to go back to work because of the cost of childcare. It's aimed mainly at those on universal credit but there needs to be help for other people who aren't on receipt of state benefits.
"The help with energy costs will be welcome and any other schemes that are in place if they could be extended. We're not expecting any headline increase to rates, it's more freezing of allowances like personal allowance and National Insurance threshold. In real terms people are seeing an increase in the amount of tax they pay as their wages hopefully increase."
Chris Wilson is Head of Tax at Fortus. He said: “The Spring Budget was relatively light touch, as expected, given some of the significant announcements and turbulence in the economy caused by the last two budget speeches.
"The Corporation Tax rise to 25% was confirmed, which will no doubt have disappointed many business owners hoping for a deferral or reversal of the tax increase. This has been offset to an extent through the introduction of the ‘full expensing’ regime for investment into qualifying capital items, where relief is given in full in the year of purchase.
"Some attention was again given to pension savings, although departing from the trend of recent years in tightening tax relief on pensions, as we saw an increase in the annual allowance and plan to abolish the lifetime allowance – this will be welcome news for both employees and business owners investing heavily into pension arrangements.”
What will be in the Budget?
Most of what will be in the budget is under wraps, but a few things have been confirmed and lots of other things havce been rumoured. Here's what we know:
Energy
Mr Hunt is expected to cancel the planned £500 hike in average energy bills which was due to come into force next month, in a move that would see bills for the average household staying at around £2,500, instead of going up to £3,000 as was previously announced.
The Treasury has come under increasing pressure in recent weeks to cancel the rise, which was set to come into force from April 1.
Fuel Duty
On fuel duty, some Tory backbenchers have urged the Chancellor to act to support motorists facing a 12p-per-litre hike in fuel duty in March.
A 23% increase in the duty is pencilled in for this month, but chancellors have repeatedly frozen the levy in the past.
Mr Hunt has so far not said what he will do.
Pensions
The Chancellor is understood to be looking at increasing the lifetime pension allowance, in what could help support a wider ambition to encourage older workers back into the jobs market, to help with the UK’s shrinking workforce.
The PA news agency understands Jeremy Hunt is considering allowing workers to put more money into their pension pot before being taxed as part of his Budget package.
Swimming pools
The Chancellor has confirmed that £63 million will be made available in his Budget to help public swimming pools stay open in the face of high energy bills.
More than £20 million of the one-year fund will be made available in grants to leisure centres with pools that are dealing with immediate cost pressures, while £40 million is earmarked for investment in decarbonisation and long-term energy efficiency measures.
New 'investment zones'
Chancellor Jeremy Hunt is to set out plans for 12 new investment zones to “supercharge” growth in hi-tech industries in his first Budget today.
Officials said the scheme – backed by £80 million of investment over five years in each of the new high-growth zones – is designed to accelerate research and development in the UK’s “most budding industries”.
They will be focused on one of a series of key sectors – technology, creative industries, life sciences, advanced manufacturing and the “green” sector.
Eight areas in England have been shortlisted – the East Midlands, Greater Manchester, Liverpool, the North East, South Yorkshire, the Tees Valley, the West Midlands and West Yorkshire.