Chancellor of the Exchequer Jeremy Hunt has announced the budget for 2023, containing key proposals to maintain financial support during the cost-of-living crisis, as well as schemes to encourage small businesses further to drive growth in the country. These provisions look set to help the country weather the price rises for energy and come out of the global inflation crisis with a stronger economy than ever. In addition, the budget will disproportionately help BAME communities, by providing assistance to those struggling with energy bills and encouraging innovative small businesses to grow.
The current budget continues having the energy price guarantee capped at £2,500 for a further six months, instead of raising it to £3,000 as had previously been planned. This will prove vital for the vast majority of families in the country, who have been affected by the global rise in energy prices. Specifically, keeping the price cap at its current level instead of raising it is expected to save the average family £160 over the next six months. To most of the population, this will be a noticeable amount which will ease the pressure of energy bills on personal finances. In addition, an extension of the fuel duty by 5p will offer further relief to families affected by the cost-of-living crisis.
The budget also sets out means to expand the workforce, and relieve pressure on businesses struggling from a lack of workers. A new apprenticeship scheme will be created for workers in their 50s who wish to change fields and enter new careers, aimed to help widen the opportunities for people in this age group. The annual limit on tax-free pension contributions will also be raised, to help ensure no one is forced into retirement due to tax pressures. The effect of this will be to loosen the labour market and ensure businesses are able to find the workers necessary for their production. Staff shortages continue to present a problem, especially for small businesses, and these provisions hope to address that. Improved economic forecasts also offer hope that the country can ease inflation without creating a recession and the widespread unemployment which would come from this.
Connecting to this, childcare services are expected to be overhauled to allow 11 million more women the opportunity to return to work. Parents of children aged nine months to three years, who are both working 16 hours a week, are set to be offered 30 hours a week of free childcare in term-time. This will provide key assistance to many families of young children, who are disproportionately from ethnic minority communities. Currently, many new mothers find that they are forced to put work on hold for years while raising children – this proposal will give them the vital opportunity to continue their careers even during this time.
Overall, the proposals outlined in the 2023 budget are bold and positive, seeking to address disparities within the country which have been exacerbated by COVID and the cost-of-living crisis. They promise a society that simultaneously promotes growth through business, and supports households when they most need this, which encourages economic security for both those households and the nation at large.