The Budget is set to be unveiled this week by the Chancellor, revealing how much of money the Government will take in tax and what it plans to spend on. The Budget, also known as the financial statement, is a statement on the nation’s finances and includes economical forecasts.
During the budget, the current Chancellor of the Exchequer will deliver a number of statements on the financial plans for the year. It will include whether the government plans to raise or lower taxes.
It also includes big decisions on spending on health, education, policing, social care and other public services. This year, it is expected that there will be a particular focus on energy bills and the cost of living.
Read more: Universal Credit childcare changes could save millions of families hundreds of pounds
When is the Budget?
The Budget will be delivered by Jeremy Hunt, the chancellor of the exchequer, on Wednesday, March 15th. The speech, expected to start at around 12:30, will last around an hour and will be followed by a response from Sir Keir Starmer, the leader of the opposition.
What can we expect from the Budget?
Due to the rising cost of living, the war in Ukraine and the nation’s post-Covid recovery, the economy hasn’t been in the best spot. However, things are looking up for the next economic year.
Energy bills
Mr Hunt has said the increased government borrowing as a result of rising energy bills means that he is unlikely to be able to make "significant" tax cuts. However, he is under pressure to help households who are struggling to make ends meet.
The main point expected to come from the Budget is help with energy bills. Currently, the government is limiting the energy bill of a typical household to £2,500 a year under its energy price guarantee.
However, as Ofgem, the energy regulator, recently lowered the energy price cap, it is expected that the Government will curb plans to raise the guarantee. The BBC reports that the government has also promised to bring prepayment energy charges in line with customers who pay by direct debit.
Childcare costs
Families on Universal Credit could get more help with childcare costs by receiving childcare funding upfront instead of having to claim it back. Separately, the Sunday Times has reported that the amount that parents on universal credit can claim for childcare could rise.
However, The Guardian reports that the Budget will also contain more obligations on parents. It says parents will be asked to search for work and there will be a general tightening of sanctions aimed at those on welfare.
State pension
It has been suggested that a review into raising state pension age will be put on the table. Mr Hunt has been pushing for those over the age of 50 to return to work to tackle labour shortages and as such, it has been suggested that a review will recommend that retirement age be increased.
Currently, men and women can start taking their state pensions when they turn 66. This will increase gradually to 67 between 2026 and 2028 and to 68 in 2044 and 2046.
The BBC reports that the review will recommend that the increase to 68 be brought forward to the mid-2030s instead. This would mean that millions of workers born in the 1970s would have to push back their retirement plans.
Help for businesses
According to The Indepenent, Mr Hunt will announce up to 12 new low-tax investment zones in an attempt to continue leveling up areas outside of London. The chancellor is expected to reveal 12 zones around universities.
The Treasury said each zone would get £80m of support over five years – including generous tax incentives to attract businesses to left-behind parts of the country. The North East and Tees Valley are among the areas shortlisted to host investment zones.
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