On 15 March 2023, the United Kingdom's Chancellor of the Exchequer, Jeremy Hunt, will deliver his first Spring Budget. The government is expected to address the next steps in the future of public finances in a way that will not inhibit economic growth.
Jonathan Christie and Karl McArdle, Co-Chief Operating Officers of The Property Buying Company, a UK-based cash buyer, suggest that the Spring Budget 2023 will positively impact the UK’s economy for many businesses and the housing market.
Jonathan said, “In the last autumn budget, Jeremy Hunt promised a budget of ‘stability, growth and public services’, which came only a few months after the disastrous mini-budget imposed by Liz Truss. The autumn budget aimed to stabilize the UK’s economy and steer it away from an economic depression. Mr Hunt confirmed that the economy would shrink over the end of 2022 and into early 2023 and that they had many hurdles to overcome to avoid a recession.”
He added, “Back in October, when the autumn budget was announced, the UK was facing a cost of living & energy crisis, soaring inflation prices, a reduction in quality of life, and a housing market slowing. But the autumn budget set out to help stabilize the economy through a series of tax rises, spending cuts and increased drive of renewable energy.”
Karl said, “We predict that the Spring Budget In 2023 is expected to positively impact the UK economy, with measures to reduce inflation, promote economic growth and reduce public debt. The budget is expected to include tax cuts for businesses, with some tax cuts for those buying and selling property, with incentives to encourage developers and builders to get back into the market. Additionally, the government is looking to revamp the benefits system so that vulnerable people who return to work part-time can continue claiming some benefits.”
Karl added, “We also predict that some form of energy-bill-support will be implemented — although changes to the Energy Price Guarantee may be made to protect the UK economy from sky-high energy costs. Overall, the Spring Budget is expected to provide a cushion for many by promoting economic growth and reducing inflationary pressures. But, some negative impacts could affect the overall quality of life of many British citizens.”
“It is likely that corporation and other business taxes will be increased, which could make the UK significantly less attractive to foreign businesses and investors. Additionally, there may be further cuts to public spending as the government looks to reduce public debt and repair its economic reputation. The budget could also lead to further increased energy costs.”
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