The Spring Statement by Jeremy Hunt was announced on the 15th of March 2023, discussing his continued plans to keep the UK out of a recession and making changes that will impact both businesses, individuals, and families.The changes ranged from the pension allowances to childcare support.
The starting rate for savings will be maintained at £5,000. Junior and adult ISAs will be maintained at £9,000 and £20,000 respectively.
The government confirmed the scheduled changes to corporation tax from 1 April 2023 increasing the rate from 19% to 25% for companies with profits in excess of £250,000 will be going ahead.
The government has abolished the Lifetime allowance (previously £1.073 million) and raised the pension allowance from £40,000 per annum to £60,000, effective from April 2023. Individuals will also be able to carry forward unused allowances for the three previous years.
Super deduction will be ending on 31 March 2023 as previously planned.
The government is however committed to introducing 100% (50% for special rate pool) First Year Allowance from 1 April 2023 to 31 March 2026 with promises to make it permanent when economically possible.
The government announced 30 hours per week of free childcare (for eligible parents) for up to 38 weeks in a year for children between the ages of 9 months to 3 years. It is expected to phase in from April 2024 with:
- 2 year olds accessing 15 hours per week from April 2024
- 9 month to 2 year olds getting 15 hours per week from September 2024
- 9 month to 3 year olds getting 30 hours per week from September 2025.
This is in addition to the 30 hours per week currently received by 3 to 4 year olds.