Budget 2023 – live updates: Pension lifetime allowance and childcare changes at a glance
OBR forecasts biggest fall in living standards on record as Labour’s Sir Keir Starmer accuses chancellor Jeremy Hunt of ‘permanent tax cut for wealthy’
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Your support makes all the difference.Jeremy Hunt has promised a major expansion in state-funded childcare and tax breaks for businesses in Budget measures aimed at boosting economic growth.
The Chancellor said a recession would be avoided and inflation would fall dramatically as the economy was “proving the doubters wrong” in his statement to the Commons on Wednesday.
In an effort to remove barriers to work, he promised up to 30 hours a week of free childcare for eligible households in England with children as young as nine months.
Mr Hunt resisted demands from Tory MPs to scrap April’s increase in corporation tax from 19% to 25%, but he instead promised a set of reliefs to help firms reduce their bills.
And as part of a package aimed at helping with the cost of living, the Chancellor said the energy price guarantee will be extended at its current level from April to June.
However, fiscal watchdog the Office for Budget Responsibility forecast the biggest fall in living standards on record.
The OBR upgraded its growth forecast for 2024 from 1.3% to 1.8%, but downgraded predictions for the following years to 2.5% in 2025, 2.1% in 2026 and 1.9% in 2027.
How the price of alcohol will be hit by Hunt’s Budget
Drinkers are braced for a sobering Budget expected to include a double-whammy tax raid on alcohol that could see the cost of a bottle of wine increase by about 45p.
Jeremy Hunt, the chancellor, is primed to hike alcohol duty in line with inflation – currently running at an eye-watering 10.1 per cent.
And a separate tax targetting higher strength drinks is due to come into force despite the biggest cost of living squeeze for a generation.
Matt Mathers reports.
How the price of alcohol will be hit by Jeremy Hunt’s Budget
Chancellor expected to hike duty on alcohol as new tax on drink strength comes into effect
Energy support capping bills at £2,500 to be extended three months
The energy price guarantee will be extended for a further three months from April to June at its current level, capping average annual household bills at £2,500, the Treasury has confirmed.
Mr Hunt will 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 1 April.
Thomas Kingsley reports:
Energy support capping bills at £2,500 to be extended three months
The Treasury has come under increasing pressure in recent weeks to cancel the rise
Watch- Budget 2023: Energy price guarantee to be extended for another three months
Budget 2023: Jeremy Hunt to announce £4bn expansion of free childcare
Chancellor Jeremy Hunt is set to announce a multibillion-pound expansion of free childcare to parents of one and two-year-olds in Wednesday’s Budget.
The plan is believed to include 30 hours a week of childcare for parents in England with children in that age group, with only parents with three and four-year-olds currently eligible.
The move could also see a £288m increase in funding for the current free childcare programme for three-year-olds by 2024-25, according to The Guardian.
Adam Forrest reports:
Jeremy Hunt to announce £4bn expansion of free childcare
Chancellor set to wide eligibility of free childcare to parents of one-and-two-year-olds
Lib Dem Treasury says energy support extension ‘does not go far enough’
Liberal Democrat Treasury spokeswoman Sarah Olney said the extension of the current energy price guarantee “does not go far enough”.
She said: “Instead of a sticking plaster for another three months, we need meaningful action now.
“The Liberal Democrats are calling on the Chancellor to cut energy bills by £500 per household. This would make a significant difference to households and the Government can afford to do it, they are choosing not to.
“In three months’ time families will once again be facing a cliff edge of unaffordable heating bills.”
SNP economy spokesman Stewart Hosie said: “It’s truly pathetic that the Chancellor has failed to cut energy bills, despite having ample resources to do so.
“The Tories are ripping families off by keeping bills at such exorbitantly sky-high levels, with many families forced to pay three times what they paid a year ago.”
Mass walkouts on Budget Day as teachers, junior doctors and Tube drivers strike
Hundreds of thousands of workers will stage a strike on Budget Day in what threatens to be the biggest walkout since the current wave of industrial action started last year.
Members of several trade unions will take action, mounting hundreds of picket lines across the country amid continuing anger over issues including pay, jobs, pensions and conditions.
Those striking on Wednesday include teachers, university lecturers, civil servants, junior doctors, London Underground drivers and BBC journalists.
Despite talks being held between unions and the Westminster Government, the public sector strikes remain deadlocked.
Some of the strikes, such as those by teachers, will only be held in England as progress has been made in Wales and Scotland.
Mass walkouts on Budget Day as teachers, junior doctors and Tube drivers strike
Hundreds of thousands of workers are involved in industrial action on Wednesday.
Jeremy Hunt bids to head off critics with ‘Budget for growth’
Jeremy Hunt is to unveil a “Budget for growth” designed to provide for the health service, pupils and pensioners as he seeks to silence critics in his own party.
The chancellor will say his measures go beyond helping Britain emerge from its brush with recession.
Instead, he will promise “long-term, sustainable, healthy growth that pays for our NHS and schools, finds good jobs for young people, provides a safety net for older people – all whilst making our country one of the most prosperous in the world”.
Mr Hunt is under pressure from supporters of ousted prime minister Liz Truss, who backed her focus on growth to revive the economy. The newly formed Conservative Growth Group, which claims it has 55 Tory MPs, is trying to put pressure on the government from the backbenches.
Our politics editor Kate Devlin reports:
Jeremy Hunt bids to head off critics with ‘Budget for growth’
Chancellor will pledge to make the UK a science and tech ‘superpower’
Watch live: Dominic Raab appears before Lords Committee ahead of Jeremy Hunt’s Budget
Watch live as the Justice and Home Affairs Committee question deputy PM Dominic Raab MP ahead of Jeremy Hunt’s Budget speech.
The Committee will cover a wide range of topics, including the Secretary of State’s priorities for his department on budget day and the implications of the Government’s policy on the European Convention on Human Rights (ECHR) for UK-EU security cooperation.
Live: Dominic Raab appears before Lords Committee ahead of Jeremy Hunt's budget
The Justice and Home Affairs Committee will be questioning the Rt. Hon. Dominic Raab MP, Deputy Prime Minister, Lord Chancellor, and Secretary of State for J...
Mother who spends over £1,000 per month on nursery calls plan to extend funded childcare ‘life-changing’
The mother of a 16-month-old has called the government’s expected announcement to extend funded childcare for one and two-year-olds “almost life-changing” for her family.
Nora Parr, a part-time academic based in Hornsey, north London, said she and her partner currently pay £1,040 a month for four half-days of nursery a week for their daughter.
“The news is exhilarating,” the 40-year-old told the PA news agency.
“We could apply for a mortgage, I could work more... (I) pick up the baby after lunch and finish work during her nap, every minute of childcare is spent on working hours.
“I could have five minutes to myself!
“The nursery is brilliant, but it takes a big chunk of our budget. The change to our finances would be almost life-changing... It would save us 1000+ a month.”
Live: Jeremy Hunt presents red box on Downing Street ahead of Budget
Watch live as the chancellor presents a symbolic red box to Downing Street ahead of the spring Budget announcement today.
Live: Jeremy Hunt presents red box on Downing Street ahead of Budget
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