UK Chancellor of the Exchequer Jeremy Hunt tabled the country's annual Budget in Parliament on Wednesday with a raft of measures targeted at luring people back to work with higher pension savings and childcare costs to fight back against the cost-of-living crisis.
The "Spring Budget" was pegged as a growth plan for the UK economy, which the finance minister said will avoid a recession this year and keep the government on track to meet Prime Minister Rishi Sunak's target to halve the high levels of inflation.
He declared that the forecasts from the independent Office for Budget Responsibility (OBR), which accompany the Budget, proved that the government's plan for the economy was working but that he will remain vigilant to take any further steps necessary for economic stability.
"Our plan is working inflation falling, debt down and a growing economy," said Hunt, who presented his first full Budget as a member of the Sunak-led Cabinet.
"Britain is on a lasting path to growth with a revolution in childcare support, the biggest ever employment package and the best investment incentives in Europe," he said.
Under the key Budget highlights, the minister announced 30 hours of free childcare for children over the age of nine months, with support being phased in until every single eligible working parent of under-5s gets the support by September 2025.
He also set out plans to continue to support households with cost-of-living pressures by keeping the Energy Price Guarantee at 2,500 pounds for the next three months, as help with soaring household energy bills.
The Treasury said that taken together with all the government's efforts to help households with higher costs, these measures bring the total support to an average of 3,300 pounds per UK household over 2022-23 and 2023-24.
Hunt told the Commons: "In the face of enormous challenges I report today on a British economy which is proving the doubters wrong.
"In the autumn we took difficult decisions to deliver stability and sound money. Since mid-October, 10-year gilt rates have fallen, debt servicing costs are down, mortgage rates are lower and inflation has peaked.
"The International Monetary Fund says our approach means the UK economy is on the right track." Hunt further set out a plan to remove the barriers to work facing those on benefits, those with health conditions and older workers. An increase in the pensions Annual Allowance from 40,000 pounds to 60,000 pounds and the abolition of the Lifetime Allowance will remove the disincentives to working for longer and address the challenges of an ageing population.
A new so-called Returnerships skills offer for older workers and more stringent Universal Credit job search requirements also feature in the plan, aimed at boosting the UK's workforce, filling vacancies and supporting economic growth.
In another popular measure, the "Draught Relief" has been extended from 5 per cent to 9.2 per cent, so that the duty on an average draught pint of beer served in a pub does not increase from August and will be up to 11 pence lower than the duty in supermarkets.
"In line with the government's vision for the UK to be the best place in Europe for companies to locate, invest, and grow, a new policy of full expensing will be introduced for the next three years to boost business investment in an effective cut to corporation tax of GBP 9 billion per year," the Treasury said.
"This makes the UK the joint most competitive capital allowances regime in the OECD [Organisation for Economic Cooperation and Development] and the only major European economy to have such a policy. The OBR forecast that this will increase business investment by 3 per cent for every year it is in place," it said.
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