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Posted 8 months ago | 4 minute read

Hunt delivers Spring Budget

Chancellor of the Exchequer unveils his plans for the UK economy as part of his Spring Budget announcement.

Introducing the Budget in the House of Commons on 15 March, Chancellor Jeremy Hunt confirmed that energy support will continue for the next three months, and said that the Office of Budget Responsibility has forecast that inflation will drop to 2.9% by the end of the year, one of Prime Minister Rishi Sunak’s “five priorities”.

On energy, the Budget notes that Russia’s invasion of Ukraine and global supply chain pressures have pushed wholesale energy prices to record highs and saw inflation peak at 11.1% in October 2022, the highest level in 40 years. Wholesale energy prices in 2023 are now forecast to be £1.50/th, less than half the £3.40p/th assumed at the November 2022 forecast, and supply chain pressures have continued to ease. Despite this, inflation remains elevated across advanced economies.

Hunt noted that the government’s Energy Price Guarantee (EPG) has reduced energy bills, keeping inflation lower than it otherwise would be. But to further support households with the cost of living, the government is maintaining the EPG at £2,500 for a further three months from April 2023. The Energy Bills Discount Scheme will provide eligible businesses and other non-domestic energy users across the UK with a discount on high energy bills until 31 March 2024, following the end of the current Energy Bill Relief Scheme. It will also provide businesses in sectors with particularly high levels of energy use and trade intensity with a higher level of support.

To increase resilience to future energy price shocks, the government is taking measures to support investment in the sector. These included:


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