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UK's Hunt: Will extend energy windfall tax by 1 year

UK Chancellor of the Exchequer Jeremy Hunt presents the Spring Budget to Parliament.

Key takeaways

"We can now help families with permanent cuts in tax."

"We need to boost GDP per capita, not just GDP."

"Will extend household support fund at current levels for 6 months."

"Will extend freeze in alcohol duty to February 2025."

"Will freeze fuel duty for a further year."

"Alcohol and fuel duty freezes will lower headline inflation by 0.2 percentage points in 2024/25."

"Will allow full expensing to apply to leased assets, as soon as it is affordable."

"Will increase VAT registration threshold to 90,000 pounds from April 1."

"Will raise tax on e-cigarettes and vapes."

"Will introduce one off increase in tobacco duty."

"Tax relief on furnished short-term holiday lets will be scrapped."

"Multiple dwellings relief for stamp duty land tax will be scrapped."

"Will extend energy windfall tax by 1 year."

"Extended energy windfall tax will raise 1.5 bln pounds."

"Capital gains tax on property sales will be lowered to 24% from 28%."

"Will abolish current tax system for non-domiciled taxpayers."

"Will reform ISA system to encourage more people to invest in UK assets."

"New British ISA will allow extra 5,000 pound a year tax-free investment allowance in UK equities."

"Will replace non-domiciled taxpayer regime with residency based system from April 2025."

UK Office for Budget Responsibility forecasts

"The OBR sees CPI below 2% target in just a few months' time."

"The OBR expects real household disposable income to rise by 0.8%."

"The OBR forecasts 2024/25 underlying public debt-to-GDP ratio of 91.7% (November forecast 91.6%)."

"The OBR forecasts 2025/26 underlying public debt to GDP ratio of 92.8% (November forecast 92.7%)."

"The OBR forecasts 2026/27 underlying public debt to GDP ratio of 93.2% (November forecast 93.2%)."

"The OBR forecasts headline debt will fall in every year of forecast."

"Borrowing is forecast to drop to the lowest share of GDP since 2001 at the end of forecast."

"The OBR forecasts show 8.9 bln stg of headroom vs target to reduce debt-to-GDP ratio (November forecast: 13.0 bln stg)."

"The OBR forecasts show 2024 GDP growth of 0.8% (November forecast 0.7%), 2025 GDP growth of 1.9% (November forecast 1.4%), 2026 GDP growth of 2.2% (November forecast 2.0%)."

"The OBR forecasts show budget deficit to fall to 2.7% in 2025/26, 2.3% in 2026/27, 1.6% in 2027/28 and 1.2% in 2028-29."

Developing story, please refresh the page for updates.

Market reaction

GBP/USD showed no immediate reaction to these remarks and the pair was last seen rising 0.15% on the day at 1.2720.

Author

Eren Sengezer

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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