What to Expect from Jeremy Hunt’s Spring Budget mdi-fullscreen

At around 12:30 today, Jeremy Hunt will be in the Commons to set out his latest budget. Fortunately for co-conspirators of a nervous disposition, there are unlikely to be many surprises. As always, a number of headline measures have been briefed out – getting people back into work is expected to be one major theme – and the Chancellor is unlikely to rock the boat. Expect more of Hunt’s uninspiring Treasury orthodoxy.

Here are some headlines to expect:

  • A pre-announced £5 billion increase in defence spend over two years.
  • A £4 billion expansion in free childcare, to provide an extra 30 hours a week for parents of one and two year-olds.
  • A “clean energy reset” including £20 billion for carbon capture over the next 20 years.
  • An £11 billion “tax break” for business by replacing the UK’s super-deduction investment allowance, which had been set to expire, with a temporary measure.
  • Universal Credit reform including scrapping the system used to assess eligibility for sickness payments.
  • The continuation of the energy price cap for 3 more months, preventing an average rise in energy bills of £500 per month. At a cost of around £5 billion.
  • A raise to the £40,000 cap on tax-free pension contributions. The lifetime allowance is also set to rise.
  • Inflation-linked rises to alcohol and tobacco duty.
  • 5p fuel duty cut to be extended.
  • The introduction of 12 new investment zones, backed by £80 million in investment.
  • A “skills bootcamp” to get retirees back into work.

The government’s expressed intent to press ahead with April’s planned counter-productive corporation tax rise has also ruffled some feathers on the Conservative backbenches. Watch for fireworks…

mdi-tag-outline Budget
mdi-account-multiple-outline Jeremy Hunt
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