Spring Budget key takeaways 2023

Vehicle tax

• Fuel rates have been frozen, and the five pence reduction has been maintained for a further year
• VED rates for car and van increase in line with RPI
• HGV VED rates have been frozen
• A new reformed HGV levy will be introduced from August 2023.

Taxation

• Yearly tax-free allowance for pension pots is to rise from £40,000 to £60,000
• The cap on the amount workers can accumulate in pension savings over their lifetime before having to pay extra tax will be abolished
• The government will be launching a call for evidence on the Share Incentive Plan (SIP) and Save As You Earn (SAYE) employee share schemes, and consider opportunities to improve the scheme.

Energy

• The Energy Price Guarantee, which limits typical household energy bills to £2,500, will be extended for three months
• Charges on prepayment meters to be brought in line with prices for customers paying by direct debit
• The Energy Bills Discount Scheme will provide eligible businesses a discount on high energy bills until 31 March 2024.

Business

• Tax breaks and other benefits for 12 new Investment Zones across the UK, funded by £80m each over the next five years to drive growth and bring investment into local areas

• Outgoing super deduction being replaced with ‘full expensing’, where qualifying plant and machinery (excludes cars and leased vehicles) can claim 100% first year allowances, to be in effect for three years from April 2023.

Communities and wellbeing

• £406m plan to tackle the biggest health reasons that keep people out of work
• £200m to be invested in 2023-24 to maintain and improve roads, enabling local authorities to fix more potholes, complete resurfacing and invest in major repairs and renewals
• £10m made available for a grant fund for suicide prevention organisations over the next two years to support people experiencing suicidal thoughts or approaching a mental health crisis.