Budget 2023: living standards to fall by 6% and inflation to outstrip income growth say OBR
and live on Freeview channel 276
Amongst the major announcements was an expansion to free childcare.
Budget 2023: OBR project inflation to come down to 2.9% by end of year
Key Events
- OBR project inflation to come down to 2.9% by end of year
- ‘Dressing up stagnation as stability’ says Labour leader Keir Starmer
- Pension Lifetime Allowance abolished
- Energy Price Guarantee extended until end of June
Chancellor expected to announce major change to free childcare
The Chancellor of the Exchequer, Jeremy Hunt, has left No. 11 Downing Street and has taken his seat in the House of Commons where he will deleiver his Spring Budget at 12.30pm on Wednesday.
Mr. Hunt addressed the Cabinet before making his way to the House of Commons and set out his aims for the Spring Budget.
“He set out the improved economic picture following his autumn statement, explaining it paved the way for this growth Budget,” said a No. 10 spokesperson.
“He referenced plans for deregulation with Brexit freedoms, plans to invest billions in carbon capture and storage and develop nuclear energy, a boost to levelling up through 12 investment zones across the UK and a significant package to help people get into work, ranging from support for the over-50s, those on benefits, parents, and those with long-term health conditions,” the spokesperson added.
Budget 2023: £2,500 Energy Price Guarantee to be extended to end of June
A government scheme set-up to limit how much households all over the UK pay for energy has been extended for three months, according to reports.
The Energy Price Guarantee (EPG), which limits typical household payments to £2,500, was due to end at the end of March but will now run until June. The guarantee was due to rise to £3,000 meaning energy bills for millions of households were set to rise.
The move should protect customers until the end of June when prices are expected to drop to £2,100. The Chancellor Jeremy Hunt says the extension of the EPG "will bridge the gap and ease the pressure on families, while also helping to lower inflation" and explained the reason he is taking the decision to extend the scheme is because energy bills are "one of the biggest worries for families".
Prime Minister Rishi Sunak said extending the EPG was part of his government’s commitment to cut inflation by 50% before the end of 2023.
“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 announcement comes on the day Chancellor Jeremy Hunt will announce his Spring Budget for the year ahead. Further details and announcements will be confirmed by the Chancellor in the House of Commons on Wednesday afternoon.
Inflation to come down to 2.9% by end of 2023 - OBR
The Chancellor of the Exchequer Jeremy Hunt begins delivering his budget with the announcement that, according to a forecast by the Office for Budget Responsibility (OBR), the UK will not enter a technical recession this year.
The OBR also forecast that inflation will fall from 10.7% last year to 2.9% by the end of the year, Jeremy Hunt said.