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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’

Jane Dalton
Wednesday 15 March 2023 22:33 GMT
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Budget 2023: Pension lifetime allowance cap abolished

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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.

PM pointed to the ‘breadth of work’ by government leading up to Budget announcement

Rishi Sunak pointed to the “breadth of work” by the Government in recent days, in a pre-Budget Cabinet meeting.

According to a readout, the Prime Minister “concluded Cabinet by highlighting the domestic and international announcements made in recent days, starting with announcing important legislation to tackle illegal migration and stop the boats.

“He said the UK-France Summit a few days later helped secure further measures to stop dangerous crossings along with new commitments on defence and energy security.

“He said this was closely followed by the publication of the integrated review refresh, which was welcomed by many other countries and demonstrated the UK taking a lead on how democracies can meet the current global challenges.

“He said the next stage in the Aukus partnership announced on Monday was a demonstration of Global Britain in practice. The partnership will enhance both UK and global security, and the Prime Minister underlined that nothing like it has been achieved since the 1950s. It will also deliver thousands of jobs and growth in the UK including in Barrow-in-Furness and Derby.

“The Prime Minister concluded Cabinet by saying the breadth of the work over just a few days demonstrated how the Cabinet was working as a team to deliver for the public.”

Maryam Zakir-Hussain15 March 2023 12:08

Sunak insists BBC chairman Richard Sharp was hired before he became PM

Rishi Sunak has said BBC chairman Richard Sharp was hired before he became prime minister, when challenged by Keir Starmer about the closeness of their relationship.

Starmer said that BBC leadership “caves” into the government’s demands.

(Parliament TV)
Maryam Zakir-Hussain15 March 2023 12:11

Starmer challenges PM over Lineker tweets

Labour leader Sir Keir Starmer raised the row over Gary Lineker’s tweets.

He said: “Last summer the Prime Minister claimed he wanted to protect free speech and put a stop to no platforming. So how concerned was he by last week’s campaign by Tory MPs to cancel a broadcaster?”

Rushi Sunak replied: “As I said at the time, the issues between Gary Lineker and the BBC were for them to resolve and I’m very glad that they did and we can look forward to watching Match Of The Day again on our screens.”

The row was sparked after Lineker was taken off air for a tweet comparing the language used to launch a new Government asylum seeker policy to that of 1930s Germany.

Maryam Zakir-Hussain15 March 2023 12:15

Labour MP says tweet from PM will be used by traffickers against slavery victims

Labour MP Jess Phillips said a tweet from the Prime Minister will be used by traffickers to try and convince victims of slavery that the state will not help them.

Ms Phillips, who is a shadow Home Office minister but was speaking from the backbenches, said: “I’ve worked for years with women brought here illegally as sex slaves raped by 30 men a day. Last week the Prime Minister tweeted that these victims would be denied access to support from our modern slavery system. A tweet that traffickers will hold up to these women and say: ‘see, no one will help you’.”

She added: “The biggest increase in the last 10 years has been from the huge increase in British adults and children trafficked for sex and crime within Britain. Not a number they should be proud of.”

She asked: “Who exactly will I help the next woman I meet brought here illegally from being repeatedly raped if she, as he tweeted, is denied access from our modern slavery (system)?”

Prime Minister Rishi Sunak said: “Just to correct the honourable lady, it is actually now a minority of people in our modern slavery referral system that are from the UK. That was not the intention of the legislation when it was introduced.

“We have a proud record of supporting victims of modern slavery and thousands of victims are supported every year here in the UK and that will not change as we grip illegal immigration.”

(Parliament TV)
Maryam Zakir-Hussain15 March 2023 12:17

Watch: Keir Starmer claims BBC chairman is ‘mentor’ to the PM

Sir Keir Starmer raised concerns at the appointment of BBC chairman, Richard Sharp, who he claimed is a “mentor’’ to the PM.

Watch clip here:

Maryam Zakir-Hussain15 March 2023 12:22

PM told by Commons speaker he has to answer questions at PMQs

Rishi Sunak was told by the Commons speaker he did have to answer the questions at PMQs, Kate Devlin writes.

He appeared to sit down after a rising following a question by London Tory MP Nickie Aiken.

But he was told by the Commons Speaker Lindsay Hoyle said: “Take it from the chair, please answer.”

Maryam Zakir-Hussain15 March 2023 12:25

Caroline Lucas says PM’s reply to modern slavery question is ‘shockingly negligent'

Green MP Caroline Lucas has said the PM’s response to Jess Philips MP’s question on the Modern Slavery Act was “shockingly negligent”.

Maryam Zakir-Hussain15 March 2023 12:28

PM comments on ongoing HS2 investment

Speaking on HS2, the PM said: “We are actually delivering the biggest rail investment since the Victorian era.”

“The investment going into the north is 30 per cent higher every single year under this Conservative government.”

Maryam Zakir-Hussain15 March 2023 12:30

Watch live: Rishi Sunak says Tories committed to helping people tackle cost of living

PMQs: Rishi Sunak says Tories committed to helping people tackle cost of living
Maryam Zakir-Hussain15 March 2023 12:30

Chancellor Jeremy Hunt delivers Budget

Chancellor Jeremy Hunt is delivering his first Spring Budget, which he has called a “Budget for growth”.

(Parliament TV)
Maryam Zakir-Hussain15 March 2023 12:34

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