Budget calculator: Find out how Chancellor’s statement affects you

Watch Live: PMQs and Chancellor Jeremy Hunt delivers budget

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Chancellor Jeremy Hunt took to the despatch box today to deliver the Spring Budget 2023, hailed as the “budget for growth”. In view of delivering on Prime Minister Rishi Sunak’s five key priorities, the Treasury head brought huge changes to the pension tax system, childcare benefits, corporation investment allowances and much more. But what does all this mean for you? Use our calculator below to see how your personal finances are likely to be impacted.

Fill in the details that apply to you then scroll down to see if you’ll be saving or spending more…

The main changes are: 

  • Corporation tax: The increase from 19 to 25 percent for the basic rate will go ahead as planned, but only one-in-ten companies – those making over £250,000 a year in profits – will be paying this rate from April. The Annual Investment Allowance for small businesses was also raised to £1million.
  • Energy support: The EPG will stay at £2,500 for the next three months, scrapping the planned rise to £3,000. The 5p cut on fuel duties has also been extended for a year.
  • Pensions: The £40,000 cap on tax-free annual pension contributions – which was frozen for nine years – has been raised to £60,000. The lifetime allowance, previously set at just over £1million, was abolished.
  • Childcare: Every child over nine months old in elligible households in England will have access to 30 hours a week of free childcare, and parents on Universal Credit will now receive up to £951 for one child and £1,630 for two per month.
  • Defence: The Ministry of Defence will receive an £11billion boost over the next five years.
  • Disability: The Work Capability Assessment will be dropped and a Universal Support scheme will provide funding for up to 50,000 disabled people to enter work.
  • Environment: Nuclear will be classed as an “environmentally sustainable” source of energy, allowing it to benefit from the same investment incentive schemes as wind and solar.

Mr Hunt claimed “we are following the plan and the plan is working” as he hailed a series of improved forecasts by the Office for Budget Responsibility (OBR), the Government’s independent fiscal watchdog. 

Chief among them was the prediction that inflation would more than half from 10.7 percent during the final quarter of 2022 down to 2.9 percent by the same period in 2023.

Government borrowing is also set to fall over the projection period, with the British economy returning to growth in 2024 after a 0.2 percent contraction this year. Despite this, the OBR says the UK will avoid a recession in 2023.

The Chancellor said his budget made this possible by “removing obstacles that stop businesses investing, by tackling labour shortages that stop them recruiting, by breaking down barriers that stop people working, and by harnessing British ingenuity to make us a science and technology superpower.”

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