Spring Budget: Chancellor to set out ‘Budget for Growth’

• Chancellor sets out next stage of the Government’s plan to halve inflation, grow the economy and reduce debt.
• Building on the stability he gained from Autumn Statement, Jeremy Hunt will set out next steps to drive economic growth across the UK.
• Plan will help ease the cost of living, remove barriers into work to boost incomes, drive business investment, and support new, high-growth industries of the future.

Chancellor of the Exchequer Jeremy Hunt will unveil the next phase of the Government’s plan to halve inflation, grow the economy and reduce debt in his Spring Budget today.

In his first Budget speech as Chancellor, Jeremy Hunt is expected to build on the stability gained at the Autumn Statement, with new measures to support families and businesses with the cost of living, before setting out an agenda to grow the UK economy.

The Chancellor of the Exchequer, Jeremy Hunt is expected to say: “In the Autumn we took difficult decisions to deliver stability and sound money. Today, we deliver the next part of our plan: a Budget for growth.

“Not just growth from emerging out of a downturn. But long term, sustainable, healthy growth that pays for our NHS and schools, finds good jobs for young people, provides a safety net for older people … all whilst making our country one of the most prosperous in the world.

“Today I deliver that by removing the obstacles that stop businesses investing; tackling the labour shortages that stop them recruiting; breaking down the barriers that stop people working and harnessing British ingenuity to make us a science and tech superpower.”

The Government is already protecting struggling families with one-off payments worth £94 billion. After a decade of reforms, people on low incomes can now earn £1,000 a month without paying tax or national insurance thanks to rises in tax thresholds. This has helped to lift two million people out of absolute poverty, after housing costs, including 400,000 pensioners and 500,000 children.  

The Chancellor is expected to announce fairness reforms to energy bills, bringing the bills of families on prepayment meters in line with average direct debit energy bill under the Energy Price Guarantee. This will enable four million families to save £45 a year on their energy bills from July. 

He will also announce his plan to go even further with and ambition to get hundreds of thousands more people into work. Support will focus on disabled people and those with long-term health conditions, parents, the over 50s, and people on Universal Credit. The changes are also expected to encourage benefit claimants to move into work or increase their hours with increased sanctions enforcement and Work Coach support, and childcare costs on Universal Credit to be paid up front.

The Chancellor is also expected to reject the narrative of decline, champion the successes the UK has achieved over the past decade, with a promise to build on the country’s competitive advantages to spread wealth and opportunity everywhere.

UK BUDGET MUST REVERSE TORY COST OF LIVING CRISIS

TOMMY SHEPPARD MP AND DEIDRE BROCK MP: SLASH ENERGY BILLS AND PUT MONEY BACK IN PEOPLE’S POCKETS

The SNP has said “the number one priority for the UK budget must be to put money back into people’s pockets” – warning the Tories can’t continue to hammer household incomes.

Ahead of today’s budget, Tommy Sheppard MP and Deidre Brock MP have urged Jeremy Hunt to deliver a comprehensive package to boost household incomes and economic growth. The MPs for Edinburgh East and Edinburgh North & Leith have challenged the Chancellor to deliver the SNP’s five-point plan:

1. Saving families £1400 on energy bills – by cutting the Energy Price Guarantee to £2000 and maintaining the £400 Energy Bill Support Scheme to the summer.
2. Raising public sector pay and benefits by CPI – putting money into the pockets of millions of workers and delivering Barnett consequentials for Scottish spending.
3. Scrapping Tory plans to raise the pension age to 68 and reinstating the Triple Lock – so no one must struggle in old age.
4. Re-joining the European Single Market – to boost economic growth and halt the multi-billion pound long-term damage being caused by Brexit.
5. Investing in green growth – by competing with EU and US subsidies to attract green investment.

In addition to the headroom identified by the IFS, and the billions of pounds saved as a result of the falling wholesale price of gas, the SNP is calling for the Chancellor to scrap non-dom tax status, tax share buy backs, and expand the windfall tax, which would raise billions more to fund cost of living support for ordinary households.

Commenting, Edinburgh East MP, Tommy Sheppard said: “The number one priority for the UK budget must be to put money back into people’s pockets – and reverse this Tory-made cost of living crisis.

“Scotland is a wealthy, energy-rich country but families are being fleeced by Westminster. By refusing to act, the Tories are showing why Scotland needs independence, so we can escape Westminster control, re-join the EU, and build a fair and prosperous economy.

“Families are sick to the back teeth of being ripped off by the Tory government. Instead of hammering household incomes, the Chancellor must save families £1,400 by slashing energy bills and deliver a comprehensive package of support.

“The SNP’s five-point plan would reduce bills, raise incomes and boost economic growth, at a time when many families are struggling to get by. With energy companies making record profits and the wholesale price of gas falling, there is no excuse for failing to act.”

Edinburgh North & Leith MP, Deidre Brock, added: “The SNP Scottish Government is doing everything it can with limited fiscal powers, including delivering the Scottish Child Payment, higher energy bill support, and higher public sector pay.

“The UK government must finally step up to the plate and use its reserved powers to introduce a Real Living Wage and raise public sector pay and benefits by CPI. In doing so, it would raise the incomes of millions of workers and deliver Barnett consequentials which would benefit Edinburgh and Scotland.

“This UK Budget is all about choices. Instead of making families in Edinburgh pay for Westminster failure, the Tories must fund support by scrapping non-dom tax status, expanding the windfall tax and taxing share buy backs, which would raise billions.

“And if we are serious about delivering economic growth and reversing decline, the UK government must re-join the European single market and properly invest in green energy.

“Scotland is suffering the consequences of Westminster control. The Tories trashed the economy with Brexit, austerity cuts and thirteen years of mismanagement. And with the pro-Brexit Labour Party becoming a pound-shop Tory tribute act, it’s clear independence is the only way for Scotland to secure the real change we need.”

Budget predictions – Bank of Scotland

Chris Lawrie, area director for Scotland at Bank of Scotland, said: “Business confidence in Scotland rose in recent months and, after business rates were frozen in a bid to help smaller businesses in the Scottish Budget, firms will be looking to the Chancellor to continue supporting long-term, sustainable growth and encourage higher levels of productivity.  

“Growing the economy is key and the Budget is an opportunity to bring further stability and encourage investment in future growth. The Chancellor could show that he can help meet these ambitions by increasing capital allowances and providing the greater certainty and support businesses need to invest in a more high-tech, low-carbon economy.”