Yesterday, Jeremy Hunt, outlined his first full budget since being Chancellor. From this, he has defined how the government is going to invest in certain areas to improve long term economic growth in the UK. With current issues such as the cost of living and energy crisis causing pressures for both households and businesses, this budget is critical as changes need to be made as soon as possible.
Were there energy support updates?
There were no updates on the business energy support scheme. The EBDS is still set to go ahead on the 1st of April. However, there were changes to domestic energy support.
In the new budget, the Chancellor has set out plans to support households with the cost of living crisis by keeping the energy price guarantee at £2,500 for the next three months. This will further support people to avoid the effects of inflation which are taking its toll on families at the minute.
New funding that could affect businesses:
Although there wasn’t any funding for business energy being set out, the government did introduce new policies to boost business investment in the UK. By cutting corporation tax by £9 billion each year, the government hope to increase the amount of business that wasn’t settled in the UK.
This will hopefully increase business investment by up to 3% for every year it is placed. This will level out the UK’s competition with other European countries as a lot of businesses have been looking elsewhere due to the economic pressures businesses in the UK have been facing.
The Chancellor has also proposed to boost innovation and drive business investments to reduce energy costs. This new funding could allow businesses to save money in other areas as the government lowers energy support.
How will the overall budget affect business?
The new budget will hopefully financially help businesses and families through the current economic struggles many people are seeing in the UK.
Lowering inflation and lessening the cost of living crisis will also increase people’s spending levels again, meaning they are more likely to spend money on luxury things that they may have cut back on. This could be good news for those in the hospitality and leisure sector, as more people are more likely to want to eat out, stay in hotels or spa’s or go to the gym. This could be a good time for businesses to build up the revenue they may have lost due to the energy crisis.
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