Everything You Need to Know About the UK Budget 2023

Everything You Need to Know About the UK Budget 2023

The UK Chancellor started by stating that the Office for Budget Responsibility predicts that the UK will avoid a technical recession, with inflation projected to decrease to 2.9% by the end of the year.

There was a focus on economic growth, with slightly improved forecasts for UK GDP growth.

However, the UK is still expected to lag behind other major economies.

The budget did not include any significant tax changes, with only minor adjustments to energy prices.

Many measures were introduced to boost employment and improve the UK's workforce, including offering apprenticeships to those over 50 and investing in mental health and back pain support for workers.

The budget also included changes to pensions, such as increasing the pension tax free allowance to £60,000 and abolishing the lifetime allowance of £1m.

The energy price cap of £2,500 for a typical household will be extended for the next three months, and pre-pay energy meter rates will be aligned with direct debit rates.

The budget also included investments in carbon capture and nuclear power schemes to create jobs and reduce carbon emissions.

Furthermore, the duty on alcohol will be frozen, and the UK will commit £20bn to carbon capture to reduce net carbon emissions.

The budget included measures to incentivize innovation, such as expanding R&D tax credits and offering a £1m prize each year for ten years for innovation in the AI sector.

Finally, £11bn will be added to the defence budget.