The Chancellor focused on the four pillars of his industrial strategy:
Enterprise – supporting business
Employment – encouraging more people into work
Education – providing people with skills
Everywhere – growth across the UK.
Tax and spending announcements
The Chancellor announced policies on:
Childcare – including an extension to younger children of the 30-hours a week of free childcare currently available to many working families with three and four year olds.
Benefits – a range of measures to support and encourage people into work. These include:
Work coach support will be extended to more people who are long-term scik and disabled. Work coaches gives advice, coaching and support to people, to help them secure a job.
People claiming Universal Credit will be required to agree and meet intensive work related conditions as part of their claim, by increasing the amount they need to earn before they have “light touch” requirements
Work search requirements for lead carers of children who are on Universal Credit will be expanded, expecting them to look for work or increase their working hours, with additional work coach support.
The application of sanctions for claimants who do not meet conditions agreed to as part of their claim will be strengthened.
Energy support – the energy price guarantee will remain at its current level until the end of June 2023. Under the Energy Price Guarantee, the Government sets maximum prices per unit of gas and electricity for households.
Defence – the Government will spend an additional £2 billion per year between 2023/24 and 2027/28 (£3 billion in 2024/25) on defence and national security priorities.
Taxation of pensions – the amount which can be saved tax free in private pensions in a single year and across a lifetime will increase
Fuel duty – the fuel duty rate will be frozen for 12 months. Last year’s temporary 5p cut will be maintained and duty will not be increased with inflation.
Capital allowance –from April, and for the next three years, businesses will be able to deduct 100% of all plant and machinery investment spending immediately when calculating taxable profits.Thisis often calledfull expensing.