To download our copy of the Spring Budget 2023, click here.
Without any doubt the background to this Budget announcement was a difficult one with significant inflation, widespread industrial action and an energy crisis resulting from the Ukraine conflict on the one hand, and frozen tax rates and allowances on the other.
Thankfully the Chancellor had some good news to offer. The Office for Budget Responsibility predicted that the UK will avoid recession this year, that inflation would be down to a manageable 2.9% by the end of the year and that a measure of growth was on the cards for 2024, 2025 and 2026.
Corporation tax is to remain at 25% from 1 April 2023 but moderated by tax concessions in the form of enhanced R&D relief and special capital allowances on the purchase of new machinery and technology.
There were favourable changes to pension rules and a free childcare package (deferred a year, by the way) and a host of other incidentals which don't add up to a great deal to the man on the Clapham omnibus.
Sadly there was no reference to an overhaul of capital taxes - capital gains tax, inheritance tax and stamp duty tax. Next time perhaps? Next Government, perhaps?
But two little gleams of hope shone out:
- Councils are to receive some extra funding to attend to the infrastructure i.e. the large number of pot-holes in our roads (loud cheers!); and
- Prison sentences are to be awarded to those convicted of marketing tax avoidance schemes (subdued muttering).
Well the show is over for now. The Conservative party seemed to appreciate Jeremy's endeavours. Next year the electorate will have their say!