How the spring budget could affect you

How the spring budget could affect you

Here’s what tenants need to know about the latest budget announcement...

Jeremy Hunt confirmed that the UK economy will avoid a recession in 2023, but what other changes were announced – and how will they affect you?

Delivering his second major statement as Chancellor, Jeremy Hunt stated: "In the face of enormous challenges I report today on a British economy which is proving the doubters wrong."

Every year, the Spring Budget provides insight into any progress made since the Autumn Statement and a forecast from the Office for Budget Responsibility (OBR) on the potential impacts of the newest budget announcement.

This budget announced a number of measures that will affect you – and your purse strings. Read on to get the latest…

What’s the economic forecast for 2023?

In his second fiscal policy proposal, Jeremy Hunt expanded on the Government’s growth strategy, dividing it into four main pillars: Everywhere, Enterprise, Employment and Education. The overall forecast for 2023 is more positive than was expected, with aims to halve inflation, decrease debt and ensure sustainable and long-term economic growth*. 

How will all of this affect you as a tenant?

The Government announced that it will continue to subsidise household energy bills up to £2,500 per year until the end of June to help protect British households, as well as extend the fuel duty freeze for a further 12 months, helping individuals and households further manage their costs.

Pension lifetime allowance has been abolished

In a bid to lure over-50s who took early retirement back to work, the Chancellor unveiled generous pension tax changes. The cap on tax-free pensions has led many professionals to take early retirement to avoid being hit by penalties.  

Regional update 

In Scotland, the 0% rent cap will be lifted from the 1st April, meaning that landlords can send a notice to their tenants and raise the rent by up to 3%. 

Final thought

The Spring Budget was focussed on stimulating the economy and jobs. Although the budget didn’t have any direct effects on the property and rental market, there are certain factors that will affect you as a tenant.

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