Budget 2023: Energy bill help extended ahead of Jeremy Hunt’s announcement – live updates
Jeremy Hunt #JeremyHunt
Chancellor Jeremy Hunt is delivering his Spring Budget announcement in front of the House of Commons.
It comes as the energy price guarantee will be extended for a further three months from April to June at its current level,the Treasury confirmed.
The chancellor will cancel the planned £500 hike in average energy bills which was due to come into force next month.
This move would see bills for the average household staying at around £2,500, instead of going up to £3,000 as was previously announced.
Mr Hunt, who included the measure in his Budget being unveiled today, said: “High energy bills are one of the biggest worries for families, which is why we’re maintaining the energy price guarantee at its current level.
The chancellor is also set to unveil key pension and childcare benefit changes in his new financial plan as he is expected to announce a £4bn expansion of free childcare for one- and two-year-olds.
The plan is set to include 30 hours a week of childcare for parents in England with children in that age group.
Key Points
Energy support capping bills at £2,500 to be extended three months
Chancellor to announce £4bn boost for childcare
What to expect from Jeremy Hunt’s Spring Budget 2023
Record number of workers on long-term sickness ahead of Hunt’s ‘back-to-work’ Budget
How the price of alcohol will be hit by Jeremy Hunt’s Budget
Live: Jeremy Hunt presents Government’s 2023 Budget as energy bill support extended
12:38 , Maryam Zakir-Hussain
Live: Jeremy Hunt presents Government’s 2023 Budget as energy bill support extended
Chancellor promises ‘growth’ for UK economy in Spring Budget
12:38 , Maryam Zakir-Hussain
The Chancellor summarised his plans to deliver a growth for the UK economy.
Jeremy Hunt said: “I deliver that today 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.”
Story continues
(Parliament TV)
UK will not enter a ‘technical recession’ this year
12:36 , Maryam Zakir-Hussain
The UK will not enter a “technical recession” this year, Jeremy Hunt told the Commons.
The Chancellor said: “We remain vigilant, and will not hesitate to take whatever steps are necessary for economic stability. Today the Office for Budget Responsibility forecast that because of changing international factors and the measures I take, the UK will not now enter a technical recession this year.
“They forecast we will meet the Prime Minister’s priorities to halve inflation, reduce debt and get the economy growing. We are following the plan and the plan is working. But that’s not all we’ve done.”
Chancellor Jeremy Hunt delivers Budget
12:34 , Maryam Zakir-Hussain
Chancellor Jeremy Hunt is delivering his first Spring Budget, which he has called a “Budget for growth”.
(Parliament TV)
Watch live: Rishi Sunak says Tories committed to helping people tackle cost of living
12:30 , Maryam Zakir-Hussain
PM comments on ongoing HS2 investment
12:30 , Maryam Zakir-Hussain
Speaking on HS2, the PM said: “We are actually delivering the biggest rail investment since the Victorian era.”
“The investment going into the north is 30 per cent higher every single year under this Conservative government.”
Caroline Lucas says PM’s reply to modern slavery question is ‘shockingly negligent’
12:28 , Maryam Zakir-Hussain
Green MP Caroline Lucas has said the PM’s response to Jess Philips MP’s question on the Modern Slavery Act was “shockingly negligent”.
PM told by Commons speaker he has to answer questions at PMQs
12:25 , Maryam Zakir-Hussain
Rishi Sunak was told by the Commons speaker he did have to answer the questions at PMQs, Kate Devlin writes.
He appeared to sit down after a rising following a question by London Tory MP Nickie Aiken.
But he was told by the Commons Speaker Lindsay Hoyle said: “Take it from the chair, please answer.”
Watch: Keir Starmer claims BBC chairman is ‘mentor’ to the PM
12:22 , Maryam Zakir-Hussain
Sir Keir Starmer raised concerns at the appointment of BBC chairman, Richard Sharp, who he claimed is a “mentor’’ to the PM.
Watch clip here:
Labour MP says tweet from PM will be used by traffickers against slavery victims
12:17 , Maryam Zakir-Hussain
Labour MP Jess Phillips said a tweet from the Prime Minister will be used by traffickers to try and convince victims of slavery that the state will not help them.
Ms Phillips, who is a shadow Home Office minister but was speaking from the backbenches, said: “I’ve worked for years with women brought here illegally as sex slaves raped by 30 men a day. Last week the Prime Minister tweeted that these victims would be denied access to support from our modern slavery system. A tweet that traffickers will hold up to these women and say: ‘see, no one will help you’.”
She added: “The biggest increase in the last 10 years has been from the huge increase in British adults and children trafficked for sex and crime within Britain. Not a number they should be proud of.”
She asked: “Who exactly will I help the next woman I meet brought here illegally from being repeatedly raped if she, as he tweeted, is denied access from our modern slavery (system)?”
Prime Minister Rishi Sunak said: “Just to correct the honourable lady, it is actually now a minority of people in our modern slavery referral system that are from the UK. That was not the intention of the legislation when it was introduced.
“We have a proud record of supporting victims of modern slavery and thousands of victims are supported every year here in the UK and that will not change as we grip illegal immigration.”
(Parliament TV)
Starmer challenges PM over Lineker tweets
12:15 , Maryam Zakir-Hussain
Labour leader Sir Keir Starmer raised the row over Gary Lineker’s tweets.
He said: “Last summer the Prime Minister claimed he wanted to protect free speech and put a stop to no platforming. So how concerned was he by last week’s campaign by Tory MPs to cancel a broadcaster?”
Rushi Sunak replied: “As I said at the time, the issues between Gary Lineker and the BBC were for them to resolve and I’m very glad that they did and we can look forward to watching Match Of The Day again on our screens.”
The row was sparked after Lineker was taken off air for a tweet comparing the language used to launch a new Government asylum seeker policy to that of 1930s Germany.
Sunak insists BBC chairman Richard Sharp was hired before he became PM
12:11 , Maryam Zakir-Hussain
Rishi Sunak has said BBC chairman Richard Sharp was hired before he became prime minister, when challenged by Keir Starmer about the closeness of their relationship.
Starmer said that BBC leadership “caves” into the government’s demands.
(Parliament TV)
PM pointed to the ‘breadth of work’ by government leading up to Budget announcement
12:08 , Maryam Zakir-Hussain
Rishi Sunak pointed to the “breadth of work” by the Government in recent days, in a pre-Budget Cabinet meeting.
According to a readout, the Prime Minister “concluded Cabinet by highlighting the domestic and international announcements made in recent days, starting with announcing important legislation to tackle illegal migration and stop the boats.
“He said the UK-France Summit a few days later helped secure further measures to stop dangerous crossings along with new commitments on defence and energy security.
“He said this was closely followed by the publication of the integrated review refresh, which was welcomed by many other countries and demonstrated the UK taking a lead on how democracies can meet the current global challenges.
“He said the next stage in the Aukus partnership announced on Monday was a demonstration of Global Britain in practice. The partnership will enhance both UK and global security, and the Prime Minister underlined that nothing like it has been achieved since the 1950s. It will also deliver thousands of jobs and growth in the UK including in Barrow-in-Furness and Derby.
“The Prime Minister concluded Cabinet by saying the breadth of the work over just a few days demonstrated how the Cabinet was working as a team to deliver for the public.”
PM says issues between Lineker and BBC are ‘between them’
12:06 , Maryam Zakir-Hussain
Rishi Sunak has said issues between Gary Lineker and the BBC are “between them” and he looks forward to watching Match of the Day again.
Leader of the opposition Keir Starmer has said the prime minister should “stand up to his snowflake MPs” and stop “waging war on free speech”.
New mother says chancellor’s expected reform to childcare ‘changes everything’
12:04 , Maryam Zakir-Hussain
The mother of an eight-month-old baby has said the Government’s expected announcement to extend funded childcare for one and two-year-olds “changes everything” as the plans will allow her to return to work full-time.
Natalie Godfrey, a beauty therapist based in Bournemouth, said, while her son does not yet qualify for the funded childcare, she will be able to work full-time again come July if it goes ahead.
“It will make a huge difference to me (if) I do get the funding,” the 35-year-old told the PA news agency.
“I will be going back part-time, 22 hours (a week) but if I can build up my work column, I can work more hours when my baby turns one.
“I can’t afford the £70 per day fee… Many mums can’t go back to work after mat leave as the costs are too high – this changes everything and I for one am feeling very relieved that this will now enable me to get back to work.
“I think this is a very overdue step forward to help mums get back to work and be able to earn money rather than work to pay for childcare… It gives mums the freedom and flexibility with working hours and will help boost the economy.”
Watch live: Rishi Sunak faces Keir Starmer in PMQs ahead of 2023 Budget
11:58 , Maryam Zakir-Hussain
Rishi Sunak faces Sir Keir Starmer at PMQs ahead of Jeremy Hunt’s spring Budget today.
The pair will face off at the Dispatch Box before the chancellor delivers a much-anticipated statement in the House of Commons detailing his economic policy announcements.
Ahead of Mr Hunt’s official speech, the Treasury said that the energy price guarantee will be extended for three months beyond April.
Live: Rishi Sunak faces Keir Starmer in PMQs ahead of 2023 Budget
What time is the Budget statement?
11:50 , Maryam Zakir-Hussain
Jeremy Hunt will unveil his first Spring Budget since becoming chancellor today at 12.30pm, following Prime Minister’s Questions.
The Budget is set to introduce 12 new low-tax “investment zones” in a bid to kickstart the UK’s stalling economy and help “level up” areas outside of London. The chancellor is also understood to be ready to increase the tax-free allowance for pensions to encourage those who returned early to bolster the UK’s workforce.
The financial announcement comes as the International Monetary Fund (IMF) has warned the UK’s economy is likely to perform worst of any G7 nation this year.
Where can I watch the Budget live?
Who will be eligible for extended free childcare and when will it start?
11:45 , Maryam Zakir-Hussain
Chancellor Jeremy Hunt is set to use a “Budget for growth” to boost efforts to get people back to work, with a major expansion of childcare support set to form a key part of the package.
Reports of a multibillion-pound expansion of free childcare for one and two-year-olds received a tentative welcome on Tuesday, as parents and nurseries awaited the full details from the chancellor.
The plan is believed to include 30 hours a week of childcare for parents in England with one and two-year-olds, building significantly on the current provision.
Thomas Kingsley reports:
Who will be eligible for extended free childcare and when will it start?
Government asks National Grid to keep coal plants on standby for next year
11:41 , Maryam Zakir-Hussain
The government has asked National Grid to ensure that the coal power plants that have been on standby in case of a supply crunch this winter will remain available next year as well.
The coal plants were meant to be retired last year, but amid pressure on energy markets the government and the Electricity System Operator kept them as a backup power source.
So far the plants, run by Drax and EDF, have only been used once this winter, earlier this month when temperatures plummeted.
Watch: Jeremy Hunt presents red box outside Downing Street ahead of 2023 Budget
11:15 , Maryam Zakir-Hussain
Swimming pools group appeals to Scottish government for cash to stay afloat
11:10 , Maryam Zakir-Hussain
Leisure bosses are calling on the Scottish Government to follow the chancellor’s lead and extend “vital” help for swimming pools.
Community Leisure UK (CLUK), which represents charitable trusts operating swimming pools, warned money is desperately needed to deal with rapidly rising energy costs and other bills.
Amid fears some pools may be forced to close, CLUK said if chancellor Jeremy Hunt uses his Budget to provide financial aid south of the border, the Scottish Government must do the same.
Mr Hunt is expected to promise a £40 million one-year fund to make pools more energy efficient in the long-term, along with £23 million in cash grants to leisure centres with pools facing immediate cost pressures.
(AFP via Getty Images)
While this cash will not be available to pools in Scotland, additional money will come to the Scottish Government through the Barnett formula.
Robin Strang, chair of CLUK in Scotland, said it is “vital” Holyrood ministers follow Mr Hunt’s lead with financial aid.
He warned: “The impact of rising energy costs on swimming pools across Scotland is intensifying – and that pressure is only going to become greater.
“Operators of community swimming pools will face stark choices, including closures and service reductions, unless we can channel every ounce of financial help available to them.
“While we are still seeking greater action from the UK Government in terms of relief on energy bills, it’s vital that the Scottish government ensures the knock-on impact of the Chancellor’s announcement are made available to our sector.”
Martin Lewis thanks government for extending energy price guarantee
10:58 , Maryam Zakir-Hussain
Martin Lewis has thanked the government for extending the energy price guarantee for another three months.
Posting on Twitter, he said: “The Energy Price Guarantee 20% rise has been postponed from April to July – meaning in practice it’s cancelled. Exactly what my letter (below) to Chancellor asked for. Thanks to the govt for listening & to the 135 charities backing the campaign.”
Households ‘not out of the woods’ despite energy price guarantee extension
10:53 , Maryam Zakir-Hussain
Households are still facing a £67-a-month energy bill increase from April despite the “welcome” extension to the energy price guarantee at its current rate until the summer.
Ahead of his Budget speech, chancellor Jeremy Hunt confirmed that the EPG, which limits a typical household energy bill to £2,500, will be extended for another three months.
It had been due to increase to £3,000 in April to reduce the burden on state finances.
However, consumers still face having to find an extra £67 a month to pay their energy bills from April when the government’s separate Energy Bill Support Scheme – which has seen all households receive six monthly payments of £66 or £67 direct to their energy accounts – comes to an end.
Citizens Advice chief executive Dame Clare Moriarty said the “welcome step” of extending the existing EPG would protect millions of people from unaffordable energy bills.
But she added: “Unfortunately it’s not all good news. The withdrawal of the Energy Bill Support Scheme will still mean the average monthly bill rises by £67 from April.
“With millions already unable to afford their bills and energy prices set to remain high in the years ahead, the government must now look at long-term solutions to this problem.
“Many people, especially those on low incomes, will need ongoing support not only to pay their bills but to make their homes safer and warmer through improved energy efficiency.”
Live: Jeremy Hunt presents red box on Downing Street ahead of Budget
10:38 , Maryam Zakir-Hussain
Watch live as the chancellor presents a symbolic red box to Downing Street ahead of the spring Budget announcement today.
Live: Jeremy Hunt presents red box on Downing Street ahead of Budget
Mother who spends over £1,000 per month on nursery calls plan to extend funded childcare ‘life-changing’
10:25 , Maryam Zakir-Hussain
The mother of a 16-month-old has called the government’s expected announcement to extend funded childcare for one and two-year-olds “almost life-changing” for her family.
Nora Parr, a part-time academic based in Hornsey, north London, said she and her partner currently pay £1,040 a month for four half-days of nursery a week for their daughter.
“The news is exhilarating,” the 40-year-old told the PA news agency.
“We could apply for a mortgage, I could work more… (I) pick up the baby after lunch and finish work during her nap, every minute of childcare is spent on working hours.
“I could have five minutes to myself!
“The nursery is brilliant, but it takes a big chunk of our budget. The change to our finances would be almost life-changing… It would save us 1000+ a month.”
Watch live: Dominic Raab appears before Lords Committee ahead of Jeremy Hunt’s Budget
10:06 , Maryam Zakir-Hussain
Watch live as the Justice and Home Affairs Committee question deputy PM Dominic Raab MP ahead of Jeremy Hunt’s Budget speech.
The Committee will cover a wide range of topics, including the Secretary of State’s priorities for his department on budget day and the implications of the Government’s policy on the European Convention on Human Rights (ECHR) for UK-EU security cooperation.
Live: Dominic Raab appears before Lords Committee ahead of Jeremy Hunt’s budget
Jeremy Hunt bids to head off critics with ‘Budget for growth’
09:55 , Maryam Zakir-Hussain
Jeremy Hunt is to unveil a “Budget for growth” designed to provide for the health service, pupils and pensioners as he seeks to silence critics in his own party.
The chancellor will say his measures go beyond helping Britain emerge from its brush with recession.
Instead, he will promise “long-term, sustainable, healthy growth that pays for our NHS and schools, finds good jobs for young people, provides a safety net for older people – all whilst making our country one of the most prosperous in the world”.
Mr Hunt is under pressure from supporters of ousted prime minister Liz Truss, who backed her focus on growth to revive the economy. The newly formed Conservative Growth Group, which claims it has 55 Tory MPs, is trying to put pressure on the government from the backbenches.
Our politics editor Kate Devlin reports:
Jeremy Hunt bids to head off critics with ‘Budget for growth’
Mass walkouts on Budget Day as teachers, junior doctors and Tube drivers strike
09:37 , Maryam Zakir-Hussain
Hundreds of thousands of workers will stage a strike on Budget Day in what threatens to be the biggest walkout since the current wave of industrial action started last year.
Members of several trade unions will take action, mounting hundreds of picket lines across the country amid continuing anger over issues including pay, jobs, pensions and conditions.
Those striking on Wednesday include teachers, university lecturers, civil servants, junior doctors, London Underground drivers and BBC journalists.
Despite talks being held between unions and the Westminster Government, the public sector strikes remain deadlocked.
Some of the strikes, such as those by teachers, will only be held in England as progress has been made in Wales and Scotland.
Mass walkouts on Budget Day as teachers, junior doctors and Tube drivers strike
Lib Dem Treasury says energy support extension ‘does not go far enough’
09:16 , Maryam Zakir-Hussain
Liberal Democrat Treasury spokeswoman Sarah Olney said the extension of the current energy price guarantee “does not go far enough”.
She said: “Instead of a sticking plaster for another three months, we need meaningful action now.
“The Liberal Democrats are calling on the Chancellor to cut energy bills by £500 per household. This would make a significant difference to households and the Government can afford to do it, they are choosing not to.
“In three months’ time families will once again be facing a cliff edge of unaffordable heating bills.”
SNP economy spokesman Stewart Hosie said: “It’s truly pathetic that the Chancellor has failed to cut energy bills, despite having ample resources to do so.
“The Tories are ripping families off by keeping bills at such exorbitantly sky-high levels, with many families forced to pay three times what they paid a year ago.”
(PA Media)
Budget 2023: Jeremy Hunt to announce £4bn expansion of free childcare
08:50 , Maryam Zakir-Hussain
Chancellor Jeremy Hunt is set to announce a multibillion-pound expansion of free childcare to parents of one and two-year-olds in Wednesday’s Budget.
The plan is believed to include 30 hours a week of childcare for parents in England with children in that age group, with only parents with three and four-year-olds currently eligible.
The move could also see a £288m increase in funding for the current free childcare programme for three-year-olds by 2024-25, according to The Guardian.
Adam Forrest reports:
Jeremy Hunt to announce £4bn expansion of free childcare
Watch- Budget 2023: Energy price guarantee to be extended for another three months
08:37 , Maryam Zakir-Hussain
Energy support capping bills at £2,500 to be extended three months
08:15 , Maryam Zakir-Hussain
The energy price guarantee will be extended for a further three months from April to June at its current level, capping average annual household bills at £2,500, the Treasury has confirmed.
Mr Hunt will cancel the planned £500 hike in average energy bills which was due to come into force next month, in a move that would see bills for the average household staying at around £2,500, instead of going up to £3,000 as was previously announced.
The Treasury has come under increasing pressure in recent weeks to cancel the rise, which was set to come into force from 1 April.
Thomas Kingsley reports:
Energy support capping bills at £2,500 to be extended three months
How the price of alcohol will be hit by Hunt’s Budget
08:00 , Alisha Rahaman Sarkar
Drinkers are braced for a sobering Budget expected to include a double-whammy tax raid on alcohol that could see the cost of a bottle of wine increase by about 45p.
Jeremy Hunt, the chancellor, is primed to hike alcohol duty in line with inflation – currently running at an eye-watering 10.1 per cent.
And a separate tax targetting higher strength drinks is due to come into force despite the biggest cost of living squeeze for a generation.
Matt Mathers reports.
How the price of alcohol will be hit by Jeremy Hunt’s Budget
Who is taking part in the Budget Day walkouts?
07:45 , Maryam Zakir-Hussain
Hundreds of thousands of workers from several trade unions will strike on Wednesday in what threatens to be the biggest single day of industrial action since the current wave of unrest started last year.
These are the sectors affected by the Budget Day walkouts.
Who is taking part in the Budget Day walkouts?
When is Jeremy Hunt’s budget speech?
07:30 , Alisha Rahaman Sarkar
Jeremy Hunt will unveil his first Spring Budget since becoming chancellor today, with aims of boosting growth amid the ongoing cost-of-living crisis.
Mr Hunt is due to deliver his Budget to the House of Commons at 12.30pm, following Prime Minister’s Questions.
The chancellor is expected to reveal 12 zones clustered around universities – radically scaling back a scheme introduced by the former prime minister Liz Truss which saw hundreds of councils bid against each other.
Read more here.
When is Jeremy Hunt’s budget speech 2023?
Energy price guarantee to be extended for another three months
07:21 , Maryam Zakir-Hussain
The energy price guarantee will be extended for a further three months from April to June at its current level, capping average annual household bills at £2,500, the treasury has confirmed.
The three-month extension of the energy price guarantee (EPG) at its current £2,500 level will save a typical household around £160, the government said.
Prime minister Rishi Sunak said: “We know people are worried about their bills rising in April, so to give people some peace of mind, we’re keeping the energy price guarantee at its current level until the summer when gas prices are expected to fall.
“Continuing to hold down energy bills is part of our plan to help hardworking families with the cost of living and halve inflation this year.”
The EPG had been due to rise to £3,000 in April, but falling energy prices mean that the current level can be extended to “bridge the gap” until costs fall below the cap.
Chancellor Jeremy Hunt, who included the measure in his Budget being unveiled today, said: “High energy bills are one of the biggest worries for families, which is why we’re maintaining the energy price guarantee at its current level.
“With energy bills set to fall from July onwards, this temporary change will bridge the gap and ease the pressure on families, while also helping to lower inflation too.”
What we know and what has been rumoured to be in the Budget
07:01 , Andy Gregory
With the Budget now just hours away, this report by Patrick Daly explains what you can expect to hear:
What we know and what has been rumoured to be in the Budget
Chancellor to announce £4bn boost for childcare
06:30 , Alisha Rahaman Sarkar
Chancellor Jeremy Hunt is expected to announce a £4bn expansion of free childcare for one- and two-year-olds in England.
The plan would provide extra 30 hours a week to parents of one- and two-year-olds, The Guardian reported.
It will also increase funding by £288m by 2024-25 for the existing programme of free childcare for three-year-olds.
Hunt expected to announce £8.6m funding boost for Edinburgh’s festivals
06:03 , Andy Gregory
Up to £8.6m of funding for Edinburgh’s festivals is expected to be announced in Wednesday’s Budget, reports Lucinda Cameron.
Some of the funding may go towards creating a permanent headquarters for the Fringe festival, which draws thousands of performers to Scotland’s capital each summer.
Hunt expected to announce £8.6m funding boost for Edinburgh’s festivals
‘Health and care chancellor’ urged to support social care in Budget
05:30 , Alisha Rahaman Sarkar
Funding for carers to have respite breaks should be doubled, a coalition representing older people has urged Jeremy Hunt as they dubbed him the “health and care chancellor”.
The Care and Support Alliance (CSA) said it is “imploring” Mr Hunt to use his Budget today to announce more investment in social care, including doubling government funding for carers’ breaks.
Age UK, which is a member of the CSA, said it had polled more than 1,600 carers aged 60 and above and found that 35 per cent have felt overwhelmed because of the care and support they provide, while 61 per cent sometimes or always worry about whether they would be able to keep caring or providing support.
Read more here.
‘Health and Care Chancellor’ urged to support social care in Budget
Editorial: The chancellor needs to end the abuse of apprenticeship levy funds
05:04 , Andy Gregory
In an editorial, The Independent has said that Jeremy Hunt and his colleagues “need to end the abuse of apprenticeship levy funds, as revealed by The Independent’s investigation.
It states: “Though hardly at the top of the chancellor’s list of priorities, the sums involved in these scams are material – at least £1bn. This is taxpayers’ money has been used over the past five years to fund 55,000 already high-earning executives to take courses that are equivalent to a master’s degree but are badged, absurdly, as “apprenticeships”.
“Indeed, some £100m has gone on funding MBAs, many for executives earning more than £100,000 a year – despite a government attempt to stamp this out two years ago. The rise of “apprenticeships” for management candidates appears to have come at the cost of the young, with 100,000 fewer under-25s starting apprenticeships than before the levy was introduced six years ago.
“It is outrageous that scarce resources should have been diverted in this fashion: would that those involved had steered their ingenuity to growing their businesses and taking on real apprentices, rather than exploring loopholes in a scheme that was never meant to subsidise them. The skills and apprenticeships minister, Robert Halfon, has vowed to crack down on the MBA scandal, and it can’t come soon enough.”
Editorial: The chancellor needs to end the abuse of apprenticeship levy funds
Jeremy Hunt bids to head off critics with ‘Budget for growth’
04:30 , Alisha Rahaman Sarkar
Jeremy Hunt is to unveil a “Budget for growth” designed to provide for the health service, pupils and pensioners as he seeks to silence critics in his own party.
The chancellor will say his measures go beyond helping Britain emerge from its brush with recession.
Instead, he will promise “long-term, sustainable, healthy growth that pays for our NHS and schools, finds good jobs for young people, provides a safety net for older people – all whilst making our country one of the most prosperous in the world”.
Kate Devlin has more.
Jeremy Hunt bids to head off critics with ‘Budget for growth’
What will happen to taxes in the Budget?
04:02 , Andy Gregory
Conservative MPs have been pushing for tax cuts – despite Jeremy Hunt so far appearing to be resistant to those calls, particularly on the issue of the planned corporation tax rise.
The business tax is due to go up from 19 to 25 per cent in April, under plans agreed during Boris Johnson’s premiership and Rishi Sunak’s tenure as chancellor.
All eyes will be on the chancellor to see if he offers any tax relief initiatives for businesses when he stands up in the Commons on Wednesday. He has already made a pre-speech announcement reflecting his desire to shock the economy into growth.
The Treasury chief will announce 12 new investment zones to “supercharge” growth in hi-tech industries.
Officials said the scheme – backed by £80m of investment over five years in each of the new high-growth zones – is designed to accelerate research and development in the UK’s “most budding industries”.
What we know and what has been rumoured to be in the Budget
03:40 , Alisha Rahaman Sarkar
The chancellor will unveil his Budget today as the country battles a cost-of-living crisis and a stalling economy.
Jeremy Hunt’s fiscal package comes in the wake of the autumn statement last November, which saw the chancellor hike taxes as he and prime minister Rishi Sunak sought to restore UK financial credibility after Liz Truss’s short-lived premiership.
With the UK narrowly avoiding a recession since and the latest economic figures giving reason for optimism, the chancellor is expected to focus his Budget on growth measures as he seeks to reignite the economy and encourage people back to the workforce after the Covid-19 pandemic.
Here is what has been briefed already and what we can likely expect in Mr Hunt’s first Budget since being appointed by Ms Truss last year.
Patrick Daly reports.
What we know and what has been rumoured to be in the Budget
Hunt to promise ‘sustainable, healthy growth’ in Budget
03:03 , Andy Gregory
Jeremy Hunt will pledge to tackle labour shortages and get people back to work when he delivers his Budget.
The chancellor is also expected to reference the “difficult decisions” taken last November to stabilise the markets, following the short-lived premiership of Liz Truss, as he outlines a plan he hopes can deliver “sustainable” growth.
“Today, we deliver the next part of our plan: a Budget for growth,” he is expected to say. “Not just growth from emerging out of a downturn.
“But long term, sustainable, healthy growth that pays for our NHS and schools, finds good jobs for young people, provides a safety net for older people … all whilst making our country one of the most prosperous in the world.”
Mr Hunt will promise a growth plan that will remove “the obstacles that stop businesses investing” while also “tackling the labour shortages that stop them recruiting” and “breaking down the barriers that stop people working”.
Chancellor Jeremy Hunt (Victoria Jones/PA Wire)
Jeremy Hunt mulling raising cap on tax-free annual pensions contributions
02:05 , Andy Gregory
Jeremy Hunt is known to be considering raising the £40,000 cap on tax-free annual pensions contributions – and could reportedly hike it to £60,000.
Mr Hunt’s team has also looked at a possible increase in the lifetime allowance (LTA) on pension savings, another tweak Mr Hunt’s team has looked at. The tax-free lifetime amount could rise from £1.07m to as much as £1.8m, according to reports.
Meanwhile, other reports suggest that the UK state pension age could rise to 68 sooner than expected.
What cost of living measures are expected in the Budget?
01:03 , Patrick Daly
Jeremy Hunt is expected to cancel the planned £500 hike in the government’s ceiling for energy bill support which was due to come into force next month.
For the average household that means bills will stay at around £2,500, instead of going up to £3,000 as was previously announced.
On fuel duty, some Tory backbenchers have urged the chancellor to act to support motorists facing a 12p-per-litre hike in fuel duty in March. A 23 per cent increase in the duty is pencilled in for this month, but chancellors have repeatedly frozen the levy in the past. Mr Hunt has so far not said what he will do.
Action is expected on prepayment meters with the Chancellor set to end the so-called “prepayment premium” from July – which the Treasury expects will save more than four million households £45 a year on their energy bills.
Struggling public swimming pools will also be handed assistance to cope with their rising energy bills, with a £63m one-off pot to be created. Most of the money will be earmarked for leisure centres to invest in moving towards renewable energy forms.
Hunt told he is running economy like ‘Jeremy from accounts’
Tuesday 14 March 2023 23:59 , Andy Gregory
Speaking to Sky’s Sophy Ridge on Sunday show, the chancellor was told that he was running the economy “like Jeremy from accounts”.
He replied that “Jeremy the chancellor will be responsible with public finances, I make absolutely no apology for that”, adding: “What you will also see on Wednesday is that we have a plan to tackle the biggest problems we face as a country.”
Hunt vows to ‘go further to bear down on inflation’
Tuesday 14 March 2023 23:00 , Andy Gregory
Jeremy Hunt earlier vowed to ”go further to bear down on inflation” in Wednesday’s Budget.
“The jobs market remains strong, but inflation remains too high,” the chancellor said this morning. “To help people’s wages go further, we need to stick to our plan to halve inflation this year.
“Tomorrow at the Budget, I will set out how we will go further to bear down on inflation, reduce debt and grow the economy, including by helping more people back into work.”
Job vacancies fall for eighth month in a row amid economic ‘uncertainty’, as Hunt prepares ‘back-to-work’ Budget
Tuesday 14 March 2023 22:01 , Andy Gregory
Vacancies across the UK have fallen for the eighth month in a row as firms hold back on hiring amid woes in the wider economy, official figures have shown as Jeremy Hunt prepares to unveil his “back-to-work” Budget.
The Office for National Statistics revealed a 51,000 drop in the number of job vacancies to 1.12 million in the three months to February, while the redundancy rate edged higher, which it said “reflects uncertainty across industries, as survey respondents continue to cite economic pressures as a factor in holding back on recruitment”.
Britain’s unemployment rate remained unchanged at 3.7 per cent in the three months to January, but the drop in vacancies signalled cracks in the jobs market as economic uncertainty weighs on companies.
The figures also showed there were 220,000 days lost to strike action in January, down from 822,000 in December, with schools the hardest hit.
Chancellor urged to use Budget to boost public sector pay in face of ‘mass exodus’
Tuesday 14 March 2023 21:03 , Andy Gregory
Jeremy Hunt has been urged to invest in public sector pay in the Budget, as new research by the Trades Congress Union (TUC) suggested nearly two in five workers are actively considering leave their profession – with a third citing low pay as a reason.
One in six public sector workers said they were skipping meals and one in 14 is using a food bank, according to the TUC – which warned that public services are facing a “mass exodus” of workers unless the current wave of pay disputes is resolved.
Unison union assistant general secretary Jon Richards said: “Decent public services are the bedrock of any society but they can’t exist without people to run them. It doesn’t take a rocket scientist to fathom that pay is key to keeping and attracting a motivated workforce.
“The government must invest in pay in the Budget so schools, hospitals, town halls and care homes can better compete with wages in the private sector. That would help boost staffing levels for everyone’s benefit.”
Video report: What to expect from Jeremy Hunt’s Spring Budget
Tuesday 14 March 2023 21:02 , Andy Gregory
Universal credit sanctions regime to be tightened in Jeremy Hunt’s ‘back-to-work’ Budget
Tuesday 14 March 2023 20:05 , Andy Gregory
The universal credit sanctions scheme is to be tightened in a new push by Jeremy Hunt to get hundreds of thousands of people into work, prompting concern among campaigners.
The requirement for benefits claimants who are lead carers of children to search for work are also to be strengthened, as part of a raft of measures the chancellor will announce on Wednesday in what he has branded his “back-to-work Budget”.
In an overhaul the government claimed was “the biggest reform to the welfare system in a decade”, the Work Capability Assessment – described as flawed by campaigners – is also to be axed.
But it comes as new Office for National Statistics figures showed the number of people off work in the UK due to long-term sickness is the highest since records began in 1993.
Universal credit sanctions scheme to be tightened in Hunt’s ‘back-to-work’ Budget
Plea for Hunt to support charities in Budget as ‘majority fear for their survival’
Tuesday 14 March 2023 19:08 , Andy Gregory
Pressure is mounting on Jeremy Hunt to provide targeted support for charities in his upcoming Budget, as new data revealed the extent to which falling donations are failing to keep up with soaring demand.
The chancellor was warned just days ago that half of charities fear they will not survive as the inflation crisis sees the cost of energy, rent and supplies skyrocket.
A group of more than 30 organisations wrote to Mr Hunt last week urging him to issue targeted funding for charities to support with energy costs and to increase payment for governmnet contracts in line with inflation.
Plea for Hunt to support charities in Budget as ‘majority fear for their survival’
‘Distinct feeling of confidence’ contagion won’t spread
Tuesday 14 March 2023 18:00 , Sam Rkaina
London’s top banking stocks like Standard Chartered, Barclays and HSBC had returned to growth on Tuesday after sinking into the red at the start of the week.
The FTSE 100 closed 88.48 points higher, or 1.17%, at 7,637.11.
Other European stocks managed to rebound after seeing even greater declines than the UK, with the German Dax moving 1.83% higher and the French Cac up 1.86%.
US investors started the day’s trading on a positive note, with the S&P 500 up 1.2% and Dow Jones up 0.65% when European markets closed.
Joshua Mahony, senior market analyst at online trading platform IG, said: “Market sentiment appears to have a turn for the better today, with equities throughout Europe and the US moving higher despite ongoing concerns over the health of the banking sector.
“The demise of Silicon Valley Bank brought concerns of further contagion throughout regional banks, leading to widespread calls over who could be the next to fall.
“However, while there are likely to be others which will have to write down bond market investments, parallels to the global financial crisis should be limited.
“With US banking stocks seeing widespread gains, there is distinct feeling of confidence that we will not see widespread issues arise throughout the financial sector.”
The pound slipped on Tuesday and was down by around 0.3% to 1.215 against the US dollar and down 0.1% to 1.1341 euros by the time markets closed.
UK top stocks claw back losses after Silicon Valley collapse
Tuesday 14 March 2023 17:34 , Sam Rkaina
The UK’s top stocks have clawed back some of the losses suffered on Monday after the collapse of Silicon Valley Bank prompted a global sell-off of banking stocks.
The FTSE 100 jumped by more than 1% on Tuesday afternoon, marking a rollercoaster session for the stock exchange which started the day firmly in the red.
But London’s top index did not manage to fully offset the 2.6% decline on Monday, which saw more than £50 billion wiped off its total value.
The failure of the tech-focused lender in the US sparked fears that the national’s financial system was beginning to buckle under the weight of a relentless series of interest rate rises.
It led some analysts to predict the Federal Reserve could leave the base rate unchanged at the next monetary policy meeting in efforts to stabilise the global economy.
But President Joe Biden sought to reassure Americans that the banking system was sound and people’s deposits were safe.
Nevertheless, he promised to look at new banking regulations to make it less likely that such a large bank failure can happen again.
All of the benefits, pensions and cost of living payments going out in March
Tuesday 14 March 2023 17:00 , Maryam Zakir-Hussain
This month many in the UK will still be looking anxiously at their energy bills and thinking twice about switching the heating on.
Ofgem has announced that its cap on the amount suppliers can charge for energy for average dual fuel, direct debit customers will fall by 23 per cent for the three months from 1 April to £3,280, from £4,279 for the January to March quarter. But campaigners warn that imminent changes to the government support measures, introduced last year to tackle soaring domestic energy costs, mean many could actually end up paying more.
Chancellor Jeremy Hunt has announced that the energy price guarantee – introduced by Liz Truss last September to ensure households paid no more than £2,500 for their electricity and gas, with the government subsidising the remainder permitted by the cap – would be increased to £3,000 from next month.
All benefits, pension and cost of living payments coming in March
Child Trust Fund: How to check if you are one of millions sitting on share of £2bn government money
Tuesday 14 March 2023 16:45 , Maryam Zakir-Hussain
Young adults could be entitled to a free sum of £1,900 if they access money amassed in unclaimed child trust funds (CFTs).
The National Audit Office (NAO) has warned that people are losing track of long-term tax free savings accounts set up under a Labour government for children born between 1 September 2002 and 2 January 2011, with more than a quarter of CFTs remaining untouched for a year or more after their owners turned 18.
Parents of the 6.3 million children born during the period were sent a £250 voucher shortly after their child was born, to open a fund. If they failed to do this before the child’s first birthday, HMRC opened an account on the child’s behalf.
Those from low-income families or in local authority care received vouchers worth £500.
Child Trust Fund: How to check if you can claim £1,900
How the price of alcohol will be hit by Jeremy Hunt’s Budget
Tuesday 14 March 2023 16:37 , Maryam Zakir-Hussain
Drinkers are braced for a sobering Budget expected to include a double-whammy tax raid on alcohol that could see the cost of a bottle of wine increase by about 45p.
Jeremy Hunt, the chancellor, is primed to hike alcohol duty in line with inflation – currently running at an eye-watering 10.1 per cent.
And a separate tax targetting higher strength drinks is due to come into force despite the biggest cost of living squeeze for a generation.
Some drink-makers have already increased the price of their products due to inflationary pressures and any further tax hikes would likely be passed on to consumers.
Matt Mathers reports:
How the price of alcohol will be hit by Jeremy Hunt’s Budget
Record number of workers on long-term sickness ahead of Hunt’s ‘back-to-work’ Budget
Tuesday 14 March 2023 16:36 , Maryam Zakir-Hussain
The number of Britons off work due to long-term sickness has reached record levels the latest official figures show, ramping up pressure on the Chancellor ahead of his “back-to-work Budget” on Wednesday.
Data from the Office for National Statistics (ONS) revealed that there were 2.52 million people off work due to long-term sickness in the three months to January – up 2.6% quarter-on-quarter and 7.9% year-on-year and the highest since record began in 1993.
The figures come as Chancellor Jeremy Hunt prepares to unveil his spring Budget on Wednesday, with measures expected to focus on getting people back into work to boost the flatlining economy.
Record number of workers on long-term sickness
What to expect from Jeremy Hunt’s Spring Budget 2023
Tuesday 14 March 2023 16:35 , Maryam Zakir-Hussain
Jeremy Hunt will unveil his Budget on Wednesday as the country faces the pressing issues of inflation, pay and public finances.
The Budget comes in the wake of the autumn statement last November, which saw the chancellor hike taxes as he and Rishi Sunak sought to restore UK financial credibility after Liz Truss’ short-lived premiership.
This time, the chancellor is expected to focus on measures that will get various cohorts back to work as part of a wider push to boost growth.
Here’s what we know so far and what we can likely expect in the Budget this week.
What to expect from Jeremy Hunt’s Spring Budget
Tuesday 14 March 2023 16:29 , Maryam Zakir-Hussain
Welcome to our liveblog where we will keep you updated with the latest ahead of the chancellor’s Budget tomorrow.
Stay tuned!