The Spring Budget is a time for the Government to set out its economic vision for the next twelve months and beyond. In the midst of a difficult financial situation with economies around the world struggling in the wake of the pandemic and Putin’s illegal war in Ukraine the outlook is, if not bright, then it is at least brightening.
This budget was rounded, professional, pragmatic, and ticked all the right boxes. I am sure every lobbying group and commentator will have wanted more here or less there but all budgets are constrained, and every change will have an effect, many unexpected.
We should welcome the grounded assurance that this budget offers for businesses and our economy. It may not have had all of the fireworks that some had hoped for, but we do not need anymore economic flashes and bangs. Steady as she goes is quite helpful and reassuring for most.
There were welcome announcements on skills, research, development, and capital allowances to help productivity and growth.
The UK will still have the lowest Corporation Tax rate in the G7, incentivising investment and boosting growth. The UK’s rate will still be lower than the US, Germany, France, Italy, Japan and Canada – showing we are still one of the most attractive places to invest and grow a business. o Under today’s measures, the UK will have the most generous capital allowance regime for business in the OECD. Today’s measures take the UK joint top of the leader board with the US and Canada.
As a member of the Work and Pensions’ Select Committee, I was particularly interested to see pension changes and to see how the Chancellor would implement changes to childcare to help our workforce and support families.
The lifetime pensions allowance being abolished may seem niche to many of us but over the last year I have been contacted by quite a few doctors, consultants, and GPs about how they, or their colleagues, are looking to retire or scale back their working hours as the previous cap meant that continuing to work would cost them money. This was unsustainable and whilst there was pension opt out possibilities, something had to be done to ensure that we at least held onto our experienced health staff and will now hopefully encourage some back.
Childcare reform is essential, I wholeheartedly welcome the changes brought in to make childcare easier to access, more affordable and sustainable for providers. Getting people who want to work, into work, is essential for growth and for individual households struggling with the increase in the cost of living.
I was disappointed that we did not see any further tax changes to support landlords and therefore tenants in the private rental sector. I appreciate that other departments are bringing forward changes to short term holiday lets but through the registration scheme this will take time. I will again speak to the Secretary of State for Levelling Up about what more can be done to support private landlords doing the right thing.
I was particularly pleased to see additional funds to address the awful state of our roads. It was good to hear the Chancellor mention myself and other Conservative MPs in Devon who have been lobbying for more help with dealing with potholes for months. Devon will be allocated an additional £9.4 million to help.
There is a lot in this budget to support families across North Devon. The highlights will see this Conservative Government extending 30 hours of childcare a week to working parents of children aged 9 months to 4 years. Paying Universal Credit childcare costs up front rather than in arrears. Introducing reforms to the childcare sector including changes to 2-year-old staff child ratios from 1:4 to 1:5. Introducing a £25 billion three-year tax cut for business investment. Increasing the annual pension allowance to £60,000 and abolishing the Lifetime Allowance. Establishing a new Universal Support programme for disabled people and the long-term sick. Abolishing the Work Capability Assessment and increasing the Administrative Earning Threshold to 18 hours. Extending the Energy Price Guarantee at £2,500 for three months. Freezing fuel duty for a thirteenth year, saving the average driver around £200, and delivering a Brexit Pub Guarantee so draught duty will always be less than duty in supermarkets – cheers to that!
