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When is the Spring Budget 2023? Predictions, time and what Jeremy Hunt could say
THE Chancellor will reveal the government's Spring Budget this afternoon.
Jeremy Hunt will be outlining the financial plan for the rest of the year - including how prices will change and any new benefits updates.
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With the rising cost of living hitting Brits hard at the moment, they'll also be keen for more information on any support packages or help available.
The Treasury has been pretty tight-lipped on specific policies and updates.
But we've had confirmation of two major policy changes to help families with both their energy bills and childcare costs.
Sources in the department have also shared a taste of what else can be expected.
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Below we explain what the Budget is and how it affects households, as well as what you can expect to be announced.
When is the Budget?
The Government has asked the Office for Budget Responsibility, Britain's independent budget office, to produce new forecasts today (Wednesday, March 15).
It will release the latest outlook for the economy and public finances.
And at 12.30pm the Chancellor will also deliver his mid-year Spring Budget.
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What is the Budget?
The Budget is when the Government outlines its plans for tax hikes, cuts and things like changes to Universal Credit and the minimum wage.
It's different to the Spending Review, which sets out how much public cash will go towards funding certain departments, devolved governments and services, such as the NHS.
The Budget is read out in the House of Commons by the Chancellor of the Exchequer.
It will be Jeremy Hunt's first Spring Budget as Chancellor.
It will be the first full Budget since last year, following the mini-Budget in September and the Autumn Statement in November.
Mr Hunt has told Tories he will "put meat on the bones" of the PM’s plan to fix the economy.
What can we expect from the Budget 2023?
The Government is under pressure to extend help for cash-strapped families and businesses facing rising costs and energy bills.
A number of policies were already announced during the Autumn Statement such as the £900 cost of living payment for hard-up households and benefits being uprated to match inflation.
And these are set to take effect in April.
Here is what else you can expect to be announced this afternoon.
Energy bill help
The current Energy Price Guarantee will be extended for another three months - meaning average bills will stay capped at £2,500 until June 30.
It will save the typical household £160.
From then, gas and electricity costs are predicted to fall to £2,000, meaning ministers will be able to wean the nation off taxpayer support.
The Treasury has already confirmed that energy firms will be barred from charging four million families who use prepayment meters more for their energy.
The average prepayment meter customer pays an extra £45 a year for their energy compared to those who pay by direct debit.
The new rule will effectively ban this prepayment meter premium and ensure that those on prepayment meters pay no more than those paying by direct debit.
The Chancellor is expected to extend the current Energy Price Guarantee until July rather than increasing it.
Energy bills were due to be hiked from £2,500 to £3,000 in April when the EPG went up.
But lower than expected borrowing has left room for the cap on gas and electricity costs to be extended.
Then in July, when the price guarantee ends, it's expected bills will fall to £2,000.
Childcare
In a huge win for mums, childcare costs will paid upfront for mums going into work from Universal Credit, rather than in arrears - as we have long campaigned for.
The maximum cap on Universal Credit costs is set to increase to £950 for a single child and £1,680 for two - a welcome boost after years being frozen.
And ratio rules are predicted to be ripped up too - in a bid to make childcare cheaper.
The number of kids who childminders can look after is expected to be changed from four to five.
Parents are also set to be £480 a year better off as strict rules on staff-to-children ratios in nurseries are relaxed.
To help with the cost of living squeeze, the number of kids per staff in nurseries is expected to rise from four to five.
This in turn should see families save £40 a week - or £480 a year.
Booze duty
Drinkers are facing a tax hike as Jeremy Hunt is poised to raise alcohol duty with inflation.
Some drinks could rise by as much as £1.29 while a bottle of wine could increase by 44p.
Distillers and brewers have been begging the Chancellor to extend the freeze as they face huge cash pressures.
But the Chancellor is expected to increase alcohol duty in line with inflation from August.
Cigarette prices
It's bad news for smokers as they face the biggest ever price hike in cigarettes next month as Mr Hunt is poised to raise tobacco duty - with a pack of 20 going up by £1.15.
Industry insiders are bracing for taxes on cigarettes to increase with inflation.
Hiking cigarette levies with 12.7% RPI - plus an extra minimum 2% bump applied to tobacco products - means a pack would jump by more than 15%.
It would see a 30g pack of tobacco go up by £2 thanks to higher rates.
Fuel duty
Millions of drivers could save at the pump if the 5p fuel duty cut is extended.
The potential move would save motorists £3.30 at the pump over the next 12 months, according to the RAC.
The Treasury has been under huge pressure in recent weeks to keep the popular 12-year fuel duty freeze as well as the 5p cut.
In a major win for The Sun's Keep It Down Campaign, fuel duty is set to stay FROZEN for a 13th year running.
Fuel duty is a tax on fuel including petrol, diesel, biodiesel and bioethanol.
The Sun's Keep it Down campaign has forced ministers to freeze duties for 12 years in a row.
Cost of living support
Around eight million households will get a £900 cost of living payment in April.
Unlike last year's help, this cost of living payment will be paid in three, not two, instalments.
You don't need to apply for the help - instead, the Department for Work and Pensions will be in touch.
Back to work drive
The Chancellor will announce a major plan to drive millions of economically inactive Brits back to work.
The package of policies will focus on the long-term sick, those with short-term illnesses, early retirees and those on welfare.
A source said: “Those who can work, will. Those who can’t, we will always help.”
Corporation tax
Corporation tax will rise to 25%, despite protests from a number of Tory MPs.
The Chancellor has told MPs that the UK will still have the lowest rate in G7, and that 70% of businesses won’t see any increase whatsoever.
Only 10% of large corporations will end up paying the full 25%.
Income tax and national insurance
Income tax and national insurance will remain at current levels.
However, Rishi Sunak has vowed to cut personal taxes as soon as the economy gets into better shape.
Universal Credit
Benefits and Universal Credit payments will rise in line with 2022's September's inflation rate of 10.1% in April.
The chancellor said in the Autumn Statement that those on Universal Credit will benefit by around £600 a year.
The DWP usually uses September’s inflation figures to make the decision on uprating benefit and pension payments from the following April.
And an increase in line with inflation is designed to help people keep up with rising prices.
Pensions
As with benefits, pensions will be hiked in line with inflation from April.
State pensioners will receive £203.85 per week - up from £185.15 in 2022/23.
The Pension Credit standard minimum guarantee (delivered by the Guarantee Credit part of Pension Credit) will also increase by 10.1%, to £201.05 per week for single claimants and £306.85 per week for couples
Lifetime pension allowance (LTA)
Around 2million middle-class Brits will benefit from an increase in the lifetime pension allowance (LTA).
This will allow workers to put more money into their pension pot before being taxed.
Mr Hunt is expected to lift it significantly from £1million to around £1.8million to keep workers in jobs for longer.
The lifetime allowance currently stands at £1.07 million, with savers incurring tax after that personal pension pot threshold has been exceeded.
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It is also understood that the Budget could see the annual allowance rate for pensions increased.
The £40,000 lid on annual tax-free pension contributions is also set for a boost - which will apply to everyone.
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