When is the 2023 budget? Will Jeremy Hunt Announce Free Childcare, Tax Cuts, Energy Bills?
Chancellor Jeremy Hunt will today announce the details of his first spring budget since taking office in October last year.
In his “Budget for Growth,” Mr. Hunt will announce free childcare for under-threes and tax incentives for people who pay into pensions longer.
He is also expected to announce further support for households to pay high energy bills in the House of Commons this afternoon.
The Chancellor has already confirmed that the energy price guarantee, which caps bills for the average household at £2,500, will be extended at its current level from April to June – as Britons continue to struggle amid the cost of living crisis.
It was due to rise to £3,000 in April and the cost of scrapping the planned 20% increase will cost the Treasury around £3bn.
Chancellor Jeremy Hunt (centre; PM Rishi Sunak on his left; Environment Secretary Therese Coffey on his right) will today announce the details of his first spring budget
When will the chancellor deliver the household today?
Mr Hunt will present his first budget to the House of Commons at 12.30 this afternoon.
This will come immediately after Labor leader Sir Keir Starmer questioned Rishi Sunak during the Prime Minister’s Questions at noon.
Today is the chancellor’s second budget, following his November 17 fall statement that reversed many of the measures introduced by then-Liz Truss and his predecessor, Kwasi Kwarteng, in their September mini-budget.
Following Mr Hunt’s statement, Shadow Chancellor Rachel Reeves will comment on the plans in the House of Commons.
Will the chancellor announce more free childcare?
A key element of the budget is expected to be a package of measures aimed at removing barriers to work – much of which consists of expanding free childcare.
The current offer of up to 30 hours a week of funded childcare in England for parents of three and four-year-olds is expected to be extended to one- and two-year-olds if both parents each earn less than £100,000.
Under Mr Hunt’s plans, the scheme will be massively expanded so that working parents can get 30 hours a week for free when their children are one or two years old.
Underfunding of the 30-hour service has led to nurseries closing while others have passed the cost on to parents of younger children
He is also expected to increase the hourly rate the government pays to providers.
UK childcare fees are among the highest in the world, with rising costs in areas such as energy and food forcing daycare centers to raise their fees to levels some parents can no longer afford.
However, underfunding of 30-hour care has meant that nurseries have closed while others have passed the cost on to parents of younger children.
Paul Johnson, head of the independent economic think tank Institute for Fiscal Studies, said sweeping reform of childcare was needed.
He said: “Many will welcome the extension of free childcare. Look for funding, though – funding for the current claim has been cut by 13% since 2017.
“As universal support has expanded, targeted support for children most in need has declined. The whole system is enormously complex. Needs a proper review.’
Jeremy Hunt is also expected to announce that childcare support will be paid upfront, rather than retrospectively, from Universal Credit, with an increased amount available to request.
Prime Minister Rishi Sunak is hosting a cabinet meeting before the Chancellor of the Exchequer presents his budget today
Chancellor Jeremy Hunt last night unveiled the preparations for his spring budget
Will tax cuts be announced in the budget?
The Chancellor is expected to announce some tax ramifications in the budget, but these are unlikely to go as far as some Tory MPs would like as he is set to increase corporate tax rates.
Despite months of lobbying by lawmakers and companies, the Chancellor will push ahead with raising the corporate tax rate from 19 percent to 25 percent, and Rishi Sunak’s “superdeduction” program is coming to an end. He will also dismiss pleas for early income tax cuts.
However, there will be new tax breaks for companies investing in the UK, with claims they could be worth up to £11billion a year.
Changes to pensions are also expected, with the chancellor likely to allow workers to put more money into their pension pot before being taxed by removing the lifetime pension supplement.
The lifetime allowance for pensions is to increase from 1.07 million
Jeremy Hunt resists pressure from Tory backbenchers for big tax cuts and will unveil a range of measures to stimulate the economy.
He is expected to reject the “narrative of decline” and vows to build on the country’s competitive advantages to spread prosperity and opportunity.
Official figures yesterday showed that UK job vacancies fell for the eighth straight month as companies hold back on hiring amid troubles in the broader economy.
Mr. Hunt will offer an olive branch to companies with plans for 12 low-tax “investment zones” and seek to encourage older workers to stay in employment with skills boot camps, training and “midlife MOTs.”
Will help for household energy bills be announced?
The Treasury confirmed earlier today that it has scrapped a proposed £500 increase in average energy bills, which is due to come into effect next month.
Instead the level will remain at £2,500 for at least another three months – extending the energy price guarantee from April to June – by which time prices should have fallen again.
Action is also due on prepayment meters as Mr Hunt scraps the so-called ‘prepayment premium’ from July – which sees those with meters charged more than those with direct debits.
Prime Minister Rishi Sunak said: “We know people are concerned their bills will increase in April. To give people some reassurance, we are keeping the energy price guarantee until the summer when gas prices are expected to drop to their current levels.
“Keeping energy costs low is part of our plan to help hard-working families with the cost of living and cut inflation in half this year.”
Falling global energy prices mean current levels will be extended to close the gap until costs are expected to fall below the cap.
Mr Hunt said: “High energy bills are one of the biggest concerns for families which is why we are keeping the Energy Price Guarantee at its current level.
“With energy bills set to fall from July, this temporary change will close the gap and ease pressure on families while helping to lower inflation.”
Will post-budget fuel tax stay frozen?
Jeremy Hunt is expected to freeze the fuel tax for the 13th straight year in today’s budget.
The “temporary” reduction in the tax of 5p per liter is also to be retained.
https://www.soundhealthandlastingwealth.com/uncategorized/what-time-is-2023-budget-will-jeremy-hunt-announce-free-childcare-tax-cuts-and-energy-bills-help/ When is the 2023 budget? Will Jeremy Hunt Announce Free Childcare, Tax Cuts, Energy Bills?