Chancellor Jeremy Hunt today set out his budget plans that he hopes will reinvigorate the UK's economy and encourage millions of people back into work.
Dubbed a 'Back to Work' budget, the Chancellor set out a number of major plans to help parents, older people and those off work with disabilities to return to work. A huge package of reforms around childcare was the standout announcement, but there was also big news on benefits, pensions, petrol and pubs.
Here we round up 10 things you need to know from today's budget announcement.
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OBR forecasts inflation will fall from 10.7% to 2.9%
The Office for Budget Responsibility forecasts inflation to fall from 10.7% last year to 2.9% by the end of the year, Jeremy Hunt said.
The Chancellor set out forecasts from the OBR which show inflation will fall.
Jeremy Hunt said: “Inflation destroys the value of hard-earned pay, deters investment and foments industrial strife. This Government remains steadfast in its support for the independent Monetary Policy Committee at the Bank of England as it takes action to return inflation to the 2% target.
“Despite continuing global instability, the OBR report today that inflation in the UK will fall from 10.7% in the final quarter of last year to 2.9% by the end of 2023.”
Major childcare reforms
As had been previously trailed, Mr Hunt announced a huge package of reforms on childcare. The Chancellor announced the policy of 30 hours of free weekly childcare will be extended to cover children below the age of three.
Eventually the policy will cover all children from the age of nine months – but will only apply to households where both parents are working. The provision only applies within term-time – so 38 weeks of the year.
The huge £4bn package could also also see increased funding for the current childcare programme for three-year-olds.
Help for pubs
A “Brexit pubs guarantee” will see the duty on draught products in pubs up to 11p lower than the duty in supermarkets from August, the Chancellor said.
Jeremy Hunt said he would “significantly increase the generosity of draught relief”, saying this could not be done when the UK was in the EU.
He told MPs: “From August 1 the duty on draught products in pubs will be up to 11p lower than the duty in supermarkets, a differential we will maintain as part of a new Brexit pubs guarantee. British ale may be warm, but the duty on a pint is frozen.”
Mr Hunt said the change will apply to “every pub in Northern Ireland” due to the Windsor Framework.
Fuel duty frozen for 13th year in a row
Millions of drivers will save money at the pumps after Jeremy Hunt announced he will keep a freeze on fuel duty. The 5p-a-litre cut in fuel duty, announced during the Budget last year, will also remain in place.
Motoring group the RAC says the announcement from the Chancellor will save drivers £3.30 at the pump over the next 12 months. Fuel duty is a tax on petrol, diesel, biodiesel and bioethanol and is included in the price you pay for every litre of fuel you buy.
Currently, fuel duty on both petrol and diesel is 52.95p-a-litre and this rate has been frozen since 2011.
Millions of prepayment meter households will no longer pay more than direct debit customers
Millions of prepayment meter households will no longer pay more than direct debit customers under plans confirmed by Jeremy Hunt in his Budget today.
Those on prepay meters are often among the lowest-income households – but they end up paying more because energy firms pass on the costs of managing the meters.
However, from July, prepay customers will no longer pay more than direct debit households.
The Treasury first issued a statement on this earlier this week, and said it will save around four million households £45 a year.
It estimates the change will cost the taxpayer £200m.
Inflation will fall this year
Jeremy Hunt laid out the economic forecast for the next five years, claiming the UK would not now enter a recession.
He said: “Let’s turn now to what the OBR say about our growth prospects. In November, they expected that the UK economy would enter recession in 2022 and contract by 1.4% in 2023. That left many families feeling concerned about the future.
“But today, the OBR forecast we will not enter a recession at all this year with a contraction of just 0.2%. And after this year the UK economy will grow in every single year of the forecast period: by 1.8% in 2024; 2.5% in 2025; 2.1% in 2026; and 1.9% in 2027.”
'12 Canary Wharfs'
In a significant announcement for our region, Jeremy Hunt said the government will deliver 12 new investment zones, which he labelled “12 potential Canary Wharfs”.
He said: “In England we have identified the following areas as having the potential to host one: West Midlands, Greater Manchester, the North East, South Yorkshire, West Yorkshire, East Midlands, Teesside and, once again, Liverpool.
“There will also be at least one in each of Scotland, Wales and Northern Ireland.”
You can read more about this plan and what it would mean for the Liverpool City Region here.
Transport funding announcement
The Chancellor announced a series of levelling-up and local transport-related funding pots in his speech today, which could have an impact in our region too.
Jeremy Hunt told the Commons: “I will invest over £200m in high-quality local regeneration projects across England including the regeneration of Tipton town centre and the Marsden New Mills Redevelopment Scheme. I am also announcing a further £161m for regeneration projects in Mayoral Combined Authorities and the Greater London Authority.
“And I will make over £400m available for new Levelling Up Partnerships in areas that include Redcar and Cleveland, Blackburn, Oldham, Rochdale, Mansfield, South Tyneside, and Bassetlaw.
“Having listened to the case for better local transport infrastructure from many Members, I can announce a second round of the City Region Sustainable Transport Settlements, allocating £8.8 billion over the next five-year funding period.”
Pensions boost
As part of his move to stop people retiring early, Mr Hunt revealed a major pensions boost in today's budget, abolishing the pensions lifetime allowance. This figure is currently set at £1.07million but will soon be scrapped, the Chancellor announced in his Budget this afternoon.
The lifetime allowance was first introduced in 2006 and was originally set at £1.5million. It rose to £1.8million by 2012 but has been continually slashed over the years. It was due to be frozen at £1.07million until 2026
Benefits changes
In a major reform of the benefits system, the Chancellor said that a new white paper on disability benefits will include abolishing the hugely controversial workplace capability assessment used to decide whether people are fit for work and whether they qualify for benefits or not.
It is hoped that this move will see benefits claimants seek work without the fear of losing disability benefits. While this move has been welcomed by campaigners, there are concerns about another measure announced by the Chancellor today.
The Universal Credit sanctions scheme is set to be tightened in a new push to get hundreds of thousands of people back into work. The move has prompted concern from campaign groups.
Trades Union leaders have described the move to tighten up sanctions as "worrying." The move will see Job Centre staff given extra training to "ensure they are applying sanctions effectively."
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