Chancellor delivers UK Spring Budget 2023

Alongside a range of measures introduced in the UK Spring Budget, the Chancellor of the Exchequer Jeremy Hunt has this week set out set out plans to introduce a tapered increase in Corporation Tax from 19% to 25% for businesses with profits between £50,000 and £250,000.

Key measures announced in the Budget include:

• Fuel duty rate will be maintained at the current levels for an additional 12 months, with the 5p cut to fuel duty on petrol and diesel in place for an additional year, until April 2024.

• Duty rates of all alcoholic products produced in, or imported into, the UK will increase in line with RPI. Draught Relief will increase from 5% to 9.2% for beer and cider draught products and from 20% to 23% for wine, spirits based and other fermented draught products. These changes will take effect from 1st August 2023.

• Duty rates on all tobacco products will increase by RPI + 2%. The rate on hand-rolling tobacco will increase by RPI + 6% and the minimum excise tax will increase by RPI +3% this year. These changes will take effect from 6pm on 15th March 2023.

Subsidies limiting household energy bills to £2,500 a year have been extended for three months, until the end of June. However, no further action has been taken to provide additional support businesses with energy costs, with the planned Energy Bill Discount Scheme to be in place for 12 months, from 1st April 2023.

Across a range of spending commitments, such as additional provision for free childcare, the Scottish Government will receive an uplift equivalent to Barnett consequentials.

These measures were announced alongside a ranges of spending commitments for the coming year. For the all the details, read the Chancellor’s speech here or find the full UK Spring Budget 2023 here.