Budget 2023: Property market hung out to dry

Earlier today (15th March), chancellor of the exchequer Jeremy Hunt delivered his Spring Budget in Parliament.

Despite specialist finance experts’ hopes of some level of intervention to help the property and housebuilding sectors, no major reforms were announced today.

Instead, the chancellor chose to focus on reforms for childcare, employment, levelling up and enterprises.

For levelling up, Hunt announced 12 new investment zones across the UK — including four in Scotland, Wales and Northern Ireland — as well as over £200m allocated for local regeneration projects in areas of need, and £400m for new Levelling Up Partnerships for 20 areas in England.

The chancellor also confirmed that plans to increase the headline rate of corporation tax to 25% from April this year will go ahead.

In addition, Hunt announced a new policy of full capital expensing will be introduced from 1st April 2023 until 31st March 2026, and an extension to the 50% first-year allowance in the same period.

To support households struggling with the cost of living crisis, the government will keep the Energy Price Guarantee to £2,500 until 30th June 2023.

On the sustainability front, Hunt pledged up to £20bn for Carbon Capture, Utilisation and Storage and extended the Climate Change Agreement scheme for a further two years to encourage energy efficiency.

"Today, we deliver the next part of our plan: a budget for growth. Not just the growth that comes when you emerge from a downturn, but long term, sustainable, healthy growth that pays for our NHS and schools, finds jobs for young people, and provides a safety net for older people all whilst making our country one of the most prosperous in the world," said Hunt.

"The Office for Budget Responsibility forecasts that because of changing international factors and the measures I take, the UK will not now enter a technical recession this year. It [also] forecasts we will meet the Prime Minister’s priorities to halve inflation, reduce debt and get the economy growing."

The key points of the Spring Budget 2023 can be found here.

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