Spring Budget 2023 Summary

On 15 March 2023, the Chancellor Jeremy Hunt delivered the Spring Statement.

Jeremy Hunt opened his first full Budget speech by declaring that it was a ‘budget for growth’. He emphasised that this would be ‘long term, sustainable, healthy growth’; after all, Kwasi Kwarteng’s ill-fated September speech at the same despatch box was titled ‘the Growth Plan’. The Office for Budget responsibility reported that there is unlikely to be any growth in 2023, but the UK is likely at least to avoid a recession.

As usual, there was plenty of speculation about what he might do – some people hoped that better than expected tax revenues would encourage him to be generous.

In the event, the great majority of the tax announcements had been made in advance, and most of the speech concentrated on spending plans. Even so, there were some striking headlines on tax: the abolition of the limit on tax-favoured pension savings were more generous than most predictions. There were measures to encourage ‘economically inactive’ people back into the workforce, ranging from increasing the provision of free childcare to the introduction of ‘returnerships’ – apprenticeships for people over 50.

What the changes mean for you

The announcement of significant tax changes several times a year, to apply from different dates, makes it hard to keep track of what is changing, when the changes will apply, and how they affect your finances. In Carpenter Box’s Budget Summary document we set out the latest proposals and their impact, but also included some significant measures from other earlier announcements as a reminder of their importance.

Watch my reaction video

The Budget presented quite a significant change for the financial services industry, most notably around pensions. In this video I explain the changes to allowances and what this means for your pension savings.

Our team are always on hand to help manage your pensions and investments. For more detailed one-to-one advice on any of the issues raised in the Budget, please get in touch with one of our Independent Financial Advisers on 01903 534587.