Spring Budget 2023

The Chancellor, Jeremy Hunt, unveiled the Spring Budget today, also announcing that the UK will not now enter a technical recession this year, according to the Office for Budget Responsibility (OBR).

Below we take a look at the key points which will impact our industry.

In today’s budget it was reported that inflation is now expected to fall from 10.7% to 2.9 per cent by the end of 2023.

Stating that high inflation has been the root cause of the strikes we have seen across the UK in recent weeks, he confirmed the government will work to end the disputes.

He also stated that GDP is now expected to contract by just 0.2pc in 2023, down from a gloomier prediction of 1.4pc in November.

Unemployment is also not expected to rise by more than one percentage point.

It has been well reported over the past weeks and months that increasing the levy in line with RPI inflation would have added 7p to the price of a litre of fuel and with the temporary 5p fuel duty cut also due to expire, it meant the cost of fuel duty was on course to rise an extra 12p per litre.

However, Mr Hunt confirmed today that the fuel duty will be frozen, and the temporary cut of 5pence per litre would be extended by a further 12 months.

The Chancellor also announced that an additional £200 million for councils to fix pot holes on UK roads. This increases the total fund to fix potholes up to £700 million.

The Chancellor confirmed that the Energy Price Guarantee will remain at £2,500 for the next three months, instead of rising to £3,000, stating that this move will save the average family £160 on their bills.

Also in today’s budget, a replacement for the super deduction tax relief which was introduced in 2021, was announced. This will see fleet operators buying vans and trucks able to benefit from a new policy of ‘full expensing’. This will be introduced for the next three years, however it will not apply to vehicles leased by companies.

Unfortunately, there was nothing from the Chancellor around electric vehicle (EV) infrastructure, which is disappoint for the fleet sector.

For further details, please see below:

BVRLA: Spring Budget Update 2023