The UK Spring Budget typically refers to the announcement of the government's financial plans and priorities for the upcoming fiscal year, which is usually presented in March.
In the past, the Spring Budget has included announcements related to taxes, government spending, and economic policies. The government may also provide updates on their progress towards meeting their economic goals and forecasts for the future.
As experts in the field, we stay up-to-date with the current state of the UK economy as it can have a ripple effect on inflation rates and ultimately impact the prices of goods at the local supermarket.
Yesterday the CEO of M&S was hopeful that the budget would help out UK businesses calling out for the government to create a balanced budget.
So what are the facts and what effect will these have on UK businesses and trade?
- Main rate of corporation tax, paid by businesses on taxable profits over £250,000, confirmed to increase from 19% to 25%
- Companies with profits between £50,000 and £250,000 to pay between 19% and 25%
- Companies able to deduct investment in new machinery and technology to lower their taxable profits
- Tax breaks and other benefits for 12 new Investment Zones across the UK, funded by £80m each over the next five years
- Reduced paperwork for international traders, who will also be given longer to submit customs forms under streamlined rules
According to the BBC, the hope is that the UK will avoid recession in 2023 but the economy will shrink. There is a growth of 1.8% predicted for next year, with 2.5% in 2025 and 2.1% in 2026.
The UK's inflation rate is predicted to fall to 2.9% by the end of this year, down from 10.7% in the last three months of 2022.
Underlying debt is forecast to be 92.4% of GDP this year, rising to 93.7% in 2024.
So with a focus on prompting those who have left their jobs to return to the workforce, and boosting business investment, let's see how this budget pans out for the rest of 2023 and beyond.
