The Spring Budget at-a-glance: Chancellor reveals tax and spending plans

Chancellor Jeremy Hunt today presents a long-awaited spring budget, under pressure to cut taxes and shore up faltering public services.

The Government is keen to court voters ahead of the impending general election, but Mr Hunt will be wary of Britain’s faltering economy and the limitations of his own tax rules.

The Spring Budget has initially been seen as a tax cut Budget, but it has since emerged that Hunt may not have the “fiscal space” to make big tax cuts due to weaker public finances after Britain entered officially in recession.

The Chancellor is expected to re-extend the fuel duty freeze at a cost of £5bn, while a 2p cut to National Insurance will cost the Treasury £10bn.

Hunt is believed to resist calls to reduce inheritance tax but could reduce the so-called “non-dom tax regime”, raising £2bn.

Budget as it happens

Hunt starts on a positive note: ‘We can now help families, not just with temporary cost of living support, but with permanent tax cuts.

“If we want growth to lead to higher wages and living standards… it can only be achieved by building a high-skill, high-wage economy.”

• Debt repayment terms extended from 12 to 24 months
• The Household Support Fund is extended for another six months
• Alcohol tax freeze in February 2025 ‘supporting the Great British Pub’
• Extension of fuel tax freeze for 12 months
• OBR says debt will fall to 94% of GDP by 2028/2029
• Investment: Full charges will be applied to leased assets “where affordable”
• £200m to expand recovery loan scheme, helping 11,000 SMEs access finance
• VAT registration threshold increased to £90,000 from 1 April
• Devolution plans to allow more purchasing power for local leaders
• Extra £100m to level up funding for some areas to boost growth
• Some details on a shake-up for the pensions regulator and the FCA, with a new requirement to disclose pension funds’ exposure to UK assets and deliver better value to pensioners.
• Remaining NatWest shares to be sold this summer
• New British savings bond, with a three-year fixed rate
• UK ISA confirmed, with extra £5,000 tax-free for investments in UK assets
• New investment for creative industries, with £26m going to the National Theater

OBR forecasts

Real household disposable income is on track to rise 0.8 percent this year.

Debt falls from 4.2 percent of GDP this year to 3.1, 2.7, 2.3, 1.6 and 1.2 percent over the next five years.

GDP will grow 0.8 percent this year and 0.9 percent next year, 0.5 percent higher than the fall forecast.