Date Published 24 March 2023
The Spring Budget was presented by the Chancellor Jeremy Hunt on March 15th, 2023, and it outlined a favorable economic outlook in terms of growth, inflation, and debt that will inspire confidence in those seeking to buy and sell homes. This Spring Budget covered levelling up which was mentioned in the white paper, decarbonization of housing, frozen duty and energy prices.
In the white paper a plan to ‘level up' regeneration projects and develop communities was mentioned as rural areas are not receiving as much support. To do this over £200 million has been pushed to set up high-quality local regeneration projects in area of need. A additional £400 million will be added for new levelling up partnerships for 20 areas across England. Also £8.8 billion over the next 5-years will be for funding a second round of the City Region Sustainable Transport Settlements.
The government has announced change to expand the VAT energy saving materials relief in Great Britain. This will provide tax incentives worth approximately £280 million to improve the energy efficiency of homes over a five-year period to 31st March 2027. The first possible area for change is the addition of new technologies, and the second is to expand the relief to include the installation of energy-saving components in structures built exclusively for a pertinent charitable purpose.
For another three months, the energy price cap will be set at £2,500, and individuals with pre-payment meters will pay rates that are comparable to those for direct debit customers.
On the whole all the points made in the Spring Budget will help but there are many topics which haven't been discussed. Unfortunately, there was no mention of tax incentives to boost the private rented sector. It is also disappointing that funding for energy efficiency improvements is not on the UK governments agenda.