Winners and losers from the Budget – and what it means for your money

Chancellor Rishi Sunak has delivered the UK’s Spring Budget, outlining measures to support households, businesses and the economy as the country emerges from the pandemic. Among the key measures, the energy price guarantee will be maintained at the current level of £2,500 for an extra three months, until June. Similarly, drivers will benefit from the extension of the 5p cut to petrol and diesel duty for a further year, as well as the freeze on fuel duty and the scrapping of an inflation-linked rise in April, which would have added 7p to the price of a litre of fuel. Meanwhile, pub patrons will see the duty on average strength draught beer frozen, whilst a £63m fund is to be used to help keep leisure centres and swimming pools in business.

Other measures include the raising of the rate of corporation tax from 19 percent to 25 percent next month, despite opposition from the Tory back benches. However, to soften the blow, Mr Sunak announced a new policy of “full expensing” for businesses, meaning every pound invested in IT equipment, plant and machinery can be deducted “in full and immediately” from taxable profit. New parents will have to wait more than two years for the full 30 hours free childcare because the funding will be released in stages.

Mr Sunak maintained the freeze on income tax, inheritance tax, and National Insurance thresholds until April 2028, despite record tax receipts over the past year. However, high earners will begin paying the 45 percent top rate of income tax at £125,140 as planned, with the threshold dropping from £150,000 in April. In addition, the Chancellor has kept the maximum that can be saved into a tax-free Individual Savings Accounts (Isas) at £20,000 for 2023-24 despite soaring inflation. The limit on Junior Isas and Child Trust Fund accounts is also frozen at £9,000.

Flyers may face slightly more expensive flights due to changes in Air Passenger Duty, which will rise with inflation, with rates for domestic flights rising by 50p to £7 in 2024-25. Smokers will also be subject to a £1.15 surge in the average price of a pack of cigarettes, after Mr Sunak raised tobacco duty in line with inflation.

Overall, the Chancellor’s Spring Budget has been criticised for not doing enough to tackle inequality and address the looming threat of climate change. However, it has been welcomed by many as a pragmatic response to the challenges currently facing the UK economy as it emerges from the pandemic.



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