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Summary
- OBR Forecast for inflation 9.1% in 2022, and 7.5% in 2023.
- Unemployment at 3.6% today, forecast to rise to 4.9% 2024.
Tax
- The top rate of tax will be lowered from £150,000 to £125,140
- All personal tax thresholds frozen until 2028.
- Dividend allowance cut to £1000 in 2023, then £500 in 2024.
- CGT cut to £6k in 2023, then £3k in 2024.
- Electric vehicles no longer exempt from 0-rated VED from April 2025.
- Stamp duty cuts announced in mini budget will remain until March 2025.
Cost of Living Support
- Energy price cap to remain at £2500 until April, then new cap of £3000 until March 2024.
- Additional payments of £900 will be paid to those on means-tested benefits, £300 to pensioner households and £150 to people on disability benefits.
- Social rent increases capped at 7% in 2023/24.
- National minimum wage increased to £10.42/hour from April 2023.
- Benefits to increase by inflation – 10.1%.
- Pension credit to be increased by 10.1%.
- Triple Lock to Remain.
Business Tax
- VAT threshold frozen until March 2026.
- Will implement reforms on taxes to big tech companies.
Windfall Tax
- Energy industry will be hit with an expanded windfall tax of 35% up from 25% from 1 January until March 2028.
- Introduce a temporary 45% levy on electricity generators.
Spending
- NHS Budget protected and increased by £3.3b in each of the next two years.
- In 2023 and 2024 the government will invest an extra £2.2bn in schools.
- Government will proceed with a new nuclear power plant at Sizewell C.
- Not cuts on any capital budgets.
- Rail projects will go ahead as planned: the Northern Powerhouse rail, the HS2 and the East West Rail.
- Overseas aid budget to remain at 0.5% (instead of the 0.7% target).
