Budget 2023 – live updates: Pension lifetime allowance and childcare changes at a glance

Jeremy Hunt has promised a major expansion in state-funded childcare and tax breaks for high earners in his Budget. Key points include:

- Inflation is expected to fall to 2.9% by the end of the year.

- The energy price guarantee will be extended for three months.

- Tax on draught products in pubs will be up to 11p lower than in supermarkets.

- Another £11 billion will be added to the defence budget over five years.

- There will be 12 new investment zones and at least one in each of Scotland, Wales and Northern Ireland.

- Up to £20bn will be allocated for carbon capture and storage.

- Nuclear power will qualify for the same investment incentives as renewable energy.

- The Chancellor announced an annual £1 million prize for AI research over the next 10 years, called the “Manchester Prize”.

- Welfare reforms will be designed to support more disabled people into work.

- Sanctions reforms will be aimed at getting people on Universal Credit benefits into work.

- The lifetime allowance limit on pensions will be axed and the pensions annual tax-free allowance will rise to £60,000.

- Incentive payments of £600 for childminders joining the profession will be tried out.

- The minimum staff-to-child ratio will change from 1:4 to 1:5 for two-year-olds in England.

- Mr Hunt said he wanted schools to offer wrap-around care either side of the school day by September 2026.

- 30 hours of free childcare for all under-fives.

Mr Hunt said the UK would avoid a recession but Labour’s Sir Keir Starmer said the tax-free pensions allowances were a “permanent tax cut” for the wealthy.

Key Points

• UK will avoid recession in 2023, chancellor says

• Government will add £11bn to the defence budget over next five years

• Tax on beer frozen as part of Jeremy Hunt’s ‘Brexit pubs guarantee’

• Chancellor will invest over £200m in local regeneration projects in widescale levelling-up series

• Hunt announces ‘biggest change to our welfare system in a decade’

• Hunt announces huge reform in childcare to help parents get back into work

• Chancellor scraps lifetime allowance limit on pensions

Nuclear energy reclassed as ‘environmentally sustainable'

15:13 , Jane Dalton

Nuclear energy is to be reclassified as “environmentally sustainable” to give it the same access to investment incentives as renewables, the Chancellor has said.

In his spring Budget, Jeremy Hunt said the Government will launch a Great British Nuclear scheme to “bring down costs” and “provide opportunities” in the supply chain with a view to nuclear power providing a quarter of the UK’s electricity generation by 2050.

He also launched a competition for small modular reactors (SMRs), which will be funded if the technology is proven to be viable.

Mr Hunt also said that he wanted to invest up to £20bn to help develop carbon capture usage and storage (CCUS) technologies, designed to suck up carbon emissions from major polluting industries.

However, none of the new money for CCUS that Mr Hunt has promised will come before the next election.

The Chancellor set out what he called the four Es - enterprise, education, employment and everywhere - as priorities.

Caroline Lucas, Green Party MP, said he had “utterly failed” to mention a fifth - environment.

She said: “Just when we needed a solar rooftop revolution, an unblocking and upscaling of renewables, a major street-by-street mass insulation programme, and a commitment to invest in our totally neglected, sewage-filled rivers and seas, we get too slow, too expensive and too dangerous nuclear white elephants.”

Pensions changes permanent tax cut for wealthy, says Labour leader

15:08 , Jane Dalton

Labour leader Sir Keir Starmer described the generous tax-free pensions allowances in the Budget as a “permanent tax cut” for the wealthy.

Sir Keir told the Commons: “We needed a fix for doctors, but the announcement today is a huge giveaway to some of the very wealthiest.

“The only permanent tax cut in the Budget is for the richest 1%. How can that possibly be a priority for this Government?

“The truth is our labour market is the cast-iron example of an economy with weak foundations. Our crisis in participation simply hasn’t happened elsewhere, not to this extent; it is a feature of Tory Britain and global excuses simply won’t wash.”

Budget ‘does not come close to legal climate and nature goals’

14:52 , Jane Dalton

Conservationists say the budget did not “come close to delivering on the UK’s legally binding climate and nature goals”.

“We need to see policies that drive down emissions, restore nature and provide meaningful support for the public in the cost-of-living crisis,” said Kate Norgrove, WWF’s executive director of advocacy and campaigns.

“At every Budget we need to see the Government publish a net-zero tracker, showing whether public spending is in line with their legal climate and nature commitments.

“Until the government take the meaningful steps to rewire our economy to deliver on climate and nature action, we will continue to see budgets that fail to meet the challenge to save our wild isles.”

Corporation tax hiked despite Tory rebel warning

14:44 , Jane Dalton

Jeremy Hunt faces a backbench Tory rebellion over the rise in corporation tax in the Budget. Influential MPs on the right have warned that raising the rate from 19 to 25 per cent would “hammer” businesses and curb growth:

Corporation tax hiked – despite Tory rebel warning on ‘hammer’ blow

Key points at a glance

14:42 , Jane Dalton

From the economy to alcohol and tobacco, and from tax and benefits changes to defence, here are the key points Jeremy Hunt announced:

Budget key points: All you need to know about Jeremy Hunt’s spring statement

Government papering over the cracks, says shadow chancellor

14:29 , Jane Dalton

Shadow chancellor Rachel Reeves said the Chancellor’s budget was “just papering over the cracks”.

“This Budget was a chance for Government to unlock Britain’s promise and potential,” she tweeted.

“But with growth downgraded, the hit to living standards the largest since records began, and a tax cut for the top 1% they are just papering over the cracks.

“Labour will build a better Britain.”

Childminders to receive £600 ‘golden hellos'

14:21 , Jane Dalton

Watch:

Hunt announces free childcare for under-fives

14:20 , Jane Dalton

Watch:

Tax cut helps only richest 1% in society, says Sir Keir

13:50 , Jane Dalton

Labour leader Keir Starmer said the one tax cut in the Budget, scrapping the pension lifetime allowance, helped the richest 1% in society.

Pointing out there was nothing extra for the NHS in the Budget, he said Britain could not afford the Tories.

And the Conservatives’ endless infighting on tax meant no progress, he said.

Tories dressing up stagnation as stability, says Labour leader

13:46 , Jane Dalton

The chancellor’s Budget was “dressing up stagnation as stability”, Labour leader Sir Keir Starmer said, claiming it put the country “on a path of managed decline”.

Working people who were earning less under the Tories deserved better than “cheap tricks from government of gimmicks”, Sir Keir went on, as he attacked Mr Hunt’s measures.

Opportunities had been missed for a proper windfall tax, and working people were being made to pay for Tory mistakes, he said, to cheers from his backbenchers.

Government will increase funding paid to nurseries providing free childcare

13:35 , Maryam Zakir-Hussain

Jeremy Hunt said the government will increase funding paid to nurseries providing free childcare under the hours offer by £204 million from this September and rising to £288 million next year.

He said: “This is an average of a 30% increase in the two-year-old rate this year, just as the sector has requested.”

Mr Hunt added: “We will change minimum staff-to-child ratios from 1:4 to 1:5 for two-year-olds in England as happens in Scotland, although the new ratios will remain optional with no obligation on either childminders or parents to adopt them.”

Mr Hunt said he also wants to help 700,000 parents on Universal Credit who had limited requirements to look for work.

He explained: “Many remain out of work because they cannot afford the upfront payment necessary to access subsidised childcare. So for any parents who are moving into work or want to increase their hours, we will pay their childcare costs upfront.

“And we will increase the maximum they can claim to £951 for one child and £1,630 for two children, an increase of almost 50%.”

Hunt announces huge reform in childcare to help parents get back into work

13:32 , Maryam Zakir-Hussain

The chancellor has confirmed a huge reform in childcare- but has said it will be implemented in stages.

The government will change minimum staff-to-child ratios from 1:4 to 1:5 for two-year-olds in England but make it “optional”, the chancellor said, as he announced an increase in funding for nurseries.

Jeremy Hunt said he wanted to reform the childcare system, warning: “We have one of the most expensive systems in the world. Almost half of non-working mothers said they would prefer to work if they could arrange suitable childcare.

“For many women, a career break becomes a career end. Our female participation rate is higher than average for OECD economies, but we trail top performers like Denmark and the Netherlands. If we matched Dutch levels of participation, there would be more than one million more women who want to work, in the labour force. And we can.”

On childminders, Mr Hunt said he wanted to address the 9% decline in one year in England, adding: “I have ... decided to address this by piloting incentive payments of £600 for childminders who sign up to the profession, rising to £1,200 for those who join through an agency.”

Hunt plans to abolish lifetime allowance limit on pensions

13:29 , Maryam Zakir-Hussain

As the third part of his plans to get older people back into work, the chancellor announced plans to abolish the lifetime allowance limit on pensions.

Jeremy Hunt told the Commons: “Finally, I have listened to the concerns of many senior NHS clinicians who say unpredictable pension tax charges are making them leave the NHS just when they are needed most. The NHS is our biggest employer, and we will shortly publish the long-term workforce plan I promised in the Autumn Statement. But ahead of that I do not want any doctor to retire early because of the way pension taxes work.”

He added: “As Chancellor I have realised the issue goes wider than doctors. No one should be pushed out of the workforce for tax reasons. So today I will increase the pensions annual tax-free allowance by 50% from £40,000 to £60,000. Some have also asked me to increase the Lifetime Allowance from its £1 million limit. But I have decided not to do that.

“Instead I will go further and abolish the Lifetime Allowance altogether.”

Mr Hunt said the changes would “stop over 80% of NHS doctors from receiving a tax charge” and incentivise “our most experienced and productive workers to stay in work for longer”.

Chancellor jokes about his ‘new career in finance’ post-50

13:26 , Maryam Zakir-Hussain

Talking about his new scheme to help over-50s back into work, the chancellor said he was “relegated to the backbenches” after he turned 50.

Deciding against leading a “quiet life,” he said he decided to embark on a “new career in finance” which was met by laughter in the benches.

“How’s it going?” could be heard amid the jeers, to which the chancellor heartily replied, “It’s going well.”

‘Biggest change to our welfare system in a decade'

13:19 , Maryam Zakir-Hussain

The chancellor announced the “biggest change to our welfare system in a decade”, with reforms aimed at supporting more disabled people into work.

Jeremy Hunt made a nod to reforms introduced by Sir Iain Duncan Smith when he was work and pensions secretary, telling the Commons: “The number of disabled people in work has risen by two million since 2013. But even after that we could fill half the vacancies in the economy with people who say they would like to work despite being inactive due to sickness or disability.

“With Zoom, Teams and new working models that make it easier to work from home this is more possible than ever before.”

“So for that reason, the ever-diligent Work and Pensions Secretary, today takes the next step in his ground-breaking work on tackling economic inactivity. I thank him for that, and today we publish a White Paper on disability benefits reform. It is the biggest change to our welfare system in a decade.

“His plans will abolish the Work Capability Assessment in Great Britain and separate benefit entitlement from an individual’s ability to work. As a result, disabled benefit claimants will always be able to seek work without fear of losing financial support.”

Hunt announces ‘AI sandbox’ to boost support for artificial intelligence businesses in UK

13:16 , Maryam Zakir-Hussain

The chancellor announced an “AI sandbox” to boost support for artificial intelligence businesses in the UK, as well as a “quantum strategy” to support the future of computing.

Jeremy Hunt said: “I can report to the House that we will launch an AI sandbox to trial new, faster approaches to help innovators get cutting edge products to market, work at pace with the Intellectual Property Office to provide clarity on IP rules so generative AI companies can access the material they need, and ask Sir Patrick Vallance’s successor, Dame Professor Angela McLean, to report before the summer on options around the growth duty for regulators.”

He added: “Because AI needs computing horsepower, I today commit around £900m of funding to implement the recommendations in the independent Future of Compute Review for an Exascale supercomputer. The power that AI’s complex algorithms need can also be provided by quantum computing.

“So today we publish a quantum strategy which will set our vision to be a world leading quantum enabled economy by 2033 with a research and innovation programme totalling £2.5 billion.”

Chancellor will class nuclear power as ‘environmentally sustainable’

13:13 , Maryam Zakir-Hussain

Jeremy Hunt confirmed nuclear power would be classed as “environmentally sustainable” to drive investment in the energy sector, and said he would launch “Great British Nuclear” to bring down costs.

The chancellor said: “To encourage the private sector investment into our nuclear programme, I today confirm that subject to consultation nuclear power will be classed as ‘environmentally sustainable’ in our green taxonomy, giving it access to the same investment incentives as renewable energy. Alongside that will come more public investment.”

Announcing “two further commitments to deliver our nuclear ambitions”, he added: “Firstly, following representations from our energetic Energy Security Secretary I am announcing the launch of Great British Nuclear which will bring down costs and provide opportunities across the nuclear supply chain to help provide up to one quarter of our electricity by 2050.

“And secondly, I am launching the first competition for small modular reactors. It will be completed by the end of this year and if demonstrated to be viable we will co-fund this exciting new technology.”

Watch: Draught drinks in pubs to be taxed less, chancellor announces

13:10 , Maryam Zakir-Hussain

Chancellor will not rest until UK is ‘Europe’s most dynamic enterprise economy'

13:09 , Maryam Zakir-Hussain

The chancellor said the government would not rest until the UK is “Europe’s most dynamic enterprise economy”.

He told MPs: “We already have lower levels of business taxation than France, Germany, Italy or Japan. But I want us to have the most pro-business, pro-enterprise tax regime anywhere. Even after the corporation tax rise this April, we will have the lowest headline rate in the G7 - lower than at any period under the last Labour government.

“Only 10% of companies will pay the full 25% rate. But even at 19% our corporation tax regime did not incentivise investment as effectively as countries with higher headline rates.”

Mr Hunt also laid out measures the Government had already taken to encourage business investment, telling the Commons: “For larger businesses we have had the super deduction, introduced by the Prime Minister, which ends this month.

“For smaller businesses we have increased the Annual Investment Allowance to £1 million, meaning 99% of all businesses can deduct the full value of all their investment from that year’s taxable profits.”

Chancellor announces policy of ‘full expensing’ for next three years

13:06 , Maryam Zakir-Hussain

Jeremy Hunt announced a policy of “full expensing” for the next three years and with an intention to make it permanent.

He explained: “That means that every single pound a company invests in IT equipment, plant or machinery can be deducted in full and immediately from taxable profits. It is a corporation tax cut worth an average of £9 billion a year for every year it is in place.”

Mr Hunt said the measure is expected to increase business investment.

He added: “I understand the party opposite (Labour) is reviewing business taxes. Let me save them the bother. They put them up, we cut them.”

Hunt allocates another £200m to help communities tackle potholes

13:02 , Maryam Zakir-Hussain

On potholes, Jeremy Hunt said the £500 million allocated would be increased by a further £200 million next year to help communities “tackle this problem”.

Mr Hunt also said: “For Scotland, Wales and Northern Ireland this Budget delivers not only a new investment zone but an additional £320 million for the Scottish Government, £180 million for the Welsh Government and £130 million for the Northern Ireland Executive as a result of Barnett consequentials.

“On top of which in Scotland, I can announce up to £8.6 million of targeted funding for the Edinburgh Festivals as well as £1.5 million funding to repair the Cloddach Bridge.

“I will provide £20 million of funding for the Welsh Government to restore the Holyhead Breakwater and, in Northern Ireland, I am allocating up to £3 million to extend the Tackling Paramilitarism Programme and up to £40 million to extend further and higher education participation.”

Chancellor will invest over £200m in local regeneration projects in widescale levelling-up series

12:59 , Maryam Zakir-Hussain

The chancellor announced a series of levelling-up and local transport-related funding pots.

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.”

Tax on beer frozen as part of Jeremy Hunt’s ‘Brexit pubs guarantee’

12:56 , Maryam Zakir-Hussain

Tax on draught beer in pubs will remain frozen from 1 August this year, chancellor Jeremy Hunt has announced.

Delivering his Spring Budget on Wednesday, Mr Hunt said he would “significantly increase the generosity of draught relief” which he said could not have been done inside the EU.

Mr Hunt 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.

Tax on beer frozen as part of Jeremy Hunt’s ‘Brexit pubs guarantee’

OBR forecast says UK will not enter recession this year, Hunt says

12:55 , Maryam Zakir-Hussain

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.”

Government will add £11bn to the defence budget over next five years

12:53 , Maryam Zakir-Hussain

The Chancellor also confirmed the government would add £11bn to the defence budget over the next five years.

Jeremy Hunt said: “Today, following representations from our persuasive Defence Secretary, I confirm that we will add a total of £11bn to our defence budget over the next five years and it will be nearly 2.25% of GDP by 2025.

“We were the first large European country to commit to 2% of GDP for defence and will raise that to 2.5% as soon as fiscal and economic circumstances allow.”

Hunt highlights UK’s ‘innovation industries'

12:52 , Maryam Zakir-Hussain

Jeremy Hunt said “declinists are wrong” about the future of the country as he highlighted the country’s “innovation industries”.

He added: “Our film and TV industry has become Europe’s largest, with our creative industries growing at twice the rate of the economy. Our advanced manufacturing industries produce around half the world’s large civil aircraft wings. And thanks to a clean energy miracle we have become a world leader in offshore wind.

“Other parties talk about a green energy revolution, so I gently remind them that nearly 90% of our solar power was installed in the last 13 years - showing it’s the Conservatives who fix the roof while the sun is shining.”

12:49 , Maryam Zakir-Hussain

Paul Johnson, the director of the Institute for Fiscal Studies (IFS), tweeted: “Rather odd that the chancellor just claimed that simply uprating benefits in line with inflation is part of a £94bn support package.

“It doesn’t even maintain real value of benefits and (should) happen automatically.

“Inflation projected to be down to 2.9% by end of this year. That would be good news.

“It is not true, though, that giving public sector workers a bit more would significantly raise inflation.”

Chancellor will not uprate fuel duty with inflation

12:47 , Maryam Zakir-Hussain

On fuel duty, Jeremy Hunt said: “Because inflation remains high, I have decided now is not the right time to uprate fuel duty with inflation or increase the duty.

“So here’s what I am going to do: for a further 12 months I’m going to maintain the 5p cut and I’m going to freeze fuel duty too. That saves the average driver £100 next year and around £200 since the 5p cut was introduced.”

Chancellor will ‘significantly increase draught relief’

12:46 , Maryam Zakir-Hussain

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.

UK will avoid recession in 2023, chancellor says

12:44 , Maryam Zakir-Hussain

The UK will not enter a “technical recession” this year, Jeremy Hunt told the Commons.

Starting his Budget, chancellor Jeremy Hunt has said the British economy is “proving the doubters wrong” in the face of “enormous challenges.”

He added that the UK economy is “on the right track.”

The chancellor said: “We remain vigilant, and will not hesitate to take whatever steps are necessary for economic stability. Today the Office for Budget Responsibility forecast that because of changing international factors and the measures I take, the UK will not now enter a technical recession this year.

“They forecast we will meet the prime minister’s priorities to halve inflation, reduce debt and get the economy growing. We are following the plan and the plan is working. But that’s not all we’ve done.”

UK will avoid recession in 2023, chancellor says

Chancellor talks about prepayment meters and direct debit

12:42 , Maryam Zakir-Hussain

Chancellor Jeremy Hunt said prepayment meters currently pay more than comparable customers on direct debit, noting: “Ofgem has already agreed with suppliers a temporary suspension to forced installations of prepayment meters.

“But today I go further, and confirm we will bring their charges in line with comparable direct debit charges. Under a Conservative government, the energy premium paid by our poorest households is coming to an end.”

Mr Hunt said he would provide a £63 million fund to “keep our public leisure centres and pools afloat” in response to high costs and £100 million will be given to support thousands of charities and community organisations.

In a nod to Sajid Javid, Mr Hunt went on: “I also note the personal courage of one of my predecessors (Mr Javid) in talking about the tragedy of suicide and the importance of preventing it.

“We already invest a lot in this area, but I will assign an extra £10 million over the next two years to help the voluntary sector play an even bigger role in stopping more families experiencing such intolerable heartache.”

Hunt says he listened to energy advice from Martin Lewis

12:40 , Maryam Zakir-Hussain

Jeremy Hunt has said he listened to advice from Martin Lewis when he decided to extend the energy price guarantee for a further three months.

Speaking of the Office for Budget Responsibility, he said: “They forecast we will meet the Prime Minister’s priorities to halve inflation, reduce debt and get the economy growing. We are following the plan and the plan is working.”Mr Hunt highlighted cost-of-living support, adding: “Today, we deliver the next part of our plan. A Budget for growth.

“Not just the growth that comes when you emerge from a downturn, but long-term, sustainable, healthy growth that pays for our NHS and schools, finds jobs for young people, and provides a safety net for older people all whilst making our country one of the most prosperous in the world. Prosperity with a purpose.”

Live: Jeremy Hunt presents Government's 2023 Budget as energy bill support extended

12:38 , Maryam Zakir-Hussain

Live: Jeremy Hunt presents Government's 2023 Budget as energy bill support extended

Chancellor promises ‘growth’ for UK economy in Spring Budget

12:38 , Maryam Zakir-Hussain

The Chancellor summarised his plans to deliver a growth for the UK economy.

Jeremy Hunt said: “I deliver that today by removing obstacles that stop businesses investing; by tackling labour shortages that stop them recruiting; by breaking down barriers that stop people working; and by harnessing British ingenuity to make us a science and technology superpower.”

UK will not enter a ‘technical recession’ this year

12:36 , Maryam Zakir-Hussain

The UK will not enter a “technical recession” this year, Jeremy Hunt told the Commons.

The Chancellor said: “We remain vigilant, and will not hesitate to take whatever steps are necessary for economic stability. Today the Office for Budget Responsibility forecast that because of changing international factors and the measures I take, the UK will not now enter a technical recession this year.

“They forecast we will meet the Prime Minister’s priorities to halve inflation, reduce debt and get the economy growing. We are following the plan and the plan is working. But that’s not all we’ve done.”

Chancellor Jeremy Hunt delivers Budget

12:34 , Maryam Zakir-Hussain

Chancellor Jeremy Hunt is delivering his first Spring Budget, which he has called a “Budget for growth”.

Watch live: Rishi Sunak says Tories committed to helping people tackle cost of living

12:30 , Maryam Zakir-Hussain

PM comments on ongoing HS2 investment

12:30 , Maryam Zakir-Hussain

Speaking on HS2, the PM said: “We are actually delivering the biggest rail investment since the Victorian era.”

“The investment going into the north is 30 per cent higher every single year under this Conservative government.”

Caroline Lucas says PM’s reply to modern slavery question is ‘shockingly negligent'

12:28 , Maryam Zakir-Hussain

Green MP Caroline Lucas has said the PM’s response to Jess Philips MP’s question on the Modern Slavery Act was “shockingly negligent”.

PM told by Commons speaker he has to answer questions at PMQs

12:25 , Maryam Zakir-Hussain

Rishi Sunak was told by the Commons speaker he did have to answer the questions at PMQs, Kate Devlin writes.

He appeared to sit down after a rising following a question by London Tory MP Nickie Aiken.

But he was told by the Commons Speaker Lindsay Hoyle said: “Take it from the chair, please answer.”

Watch: Keir Starmer claims BBC chairman is ‘mentor’ to the PM

12:22 , Maryam Zakir-Hussain

Sir Keir Starmer raised concerns at the appointment of BBC chairman, Richard Sharp, who he claimed is a “mentor’’ to the PM.

Watch clip here:

Labour MP says tweet from PM will be used by traffickers against slavery victims

12:17 , Maryam Zakir-Hussain

Labour MP Jess Phillips said a tweet from the Prime Minister will be used by traffickers to try and convince victims of slavery that the state will not help them.

Ms Phillips, who is a shadow Home Office minister but was speaking from the backbenches, said: “I’ve worked for years with women brought here illegally as sex slaves raped by 30 men a day. Last week the Prime Minister tweeted that these victims would be denied access to support from our modern slavery system. A tweet that traffickers will hold up to these women and say: ‘see, no one will help you’.”

She added: “The biggest increase in the last 10 years has been from the huge increase in British adults and children trafficked for sex and crime within Britain. Not a number they should be proud of.”

She asked: “Who exactly will I help the next woman I meet brought here illegally from being repeatedly raped if she, as he tweeted, is denied access from our modern slavery (system)?”

Prime Minister Rishi Sunak said: “Just to correct the honourable lady, it is actually now a minority of people in our modern slavery referral system that are from the UK. That was not the intention of the legislation when it was introduced.

“We have a proud record of supporting victims of modern slavery and thousands of victims are supported every year here in the UK and that will not change as we grip illegal immigration.”

Starmer challenges PM over Lineker tweets

12:15 , Maryam Zakir-Hussain

Labour leader Sir Keir Starmer raised the row over Gary Lineker’s tweets.

He said: “Last summer the Prime Minister claimed he wanted to protect free speech and put a stop to no platforming. So how concerned was he by last week’s campaign by Tory MPs to cancel a broadcaster?”

Rushi Sunak replied: “As I said at the time, the issues between Gary Lineker and the BBC were for them to resolve and I’m very glad that they did and we can look forward to watching Match Of The Day again on our screens.”

The row was sparked after Lineker was taken off air for a tweet comparing the language used to launch a new Government asylum seeker policy to that of 1930s Germany.

Sunak insists BBC chairman Richard Sharp was hired before he became PM

12:11 , Maryam Zakir-Hussain

Rishi Sunak has said BBC chairman Richard Sharp was hired before he became prime minister, when challenged by Keir Starmer about the closeness of their relationship.

Starmer said that BBC leadership “caves” into the government’s demands.

PM pointed to the ‘breadth of work’ by government leading up to Budget announcement

12:08 , Maryam Zakir-Hussain

Rishi Sunak pointed to the “breadth of work” by the Government in recent days, in a pre-Budget Cabinet meeting.

According to a readout, the Prime Minister “concluded Cabinet by highlighting the domestic and international announcements made in recent days, starting with announcing important legislation to tackle illegal migration and stop the boats.

“He said the UK-France Summit a few days later helped secure further measures to stop dangerous crossings along with new commitments on defence and energy security.

“He said this was closely followed by the publication of the integrated review refresh, which was welcomed by many other countries and demonstrated the UK taking a lead on how democracies can meet the current global challenges.

“He said the next stage in the Aukus partnership announced on Monday was a demonstration of Global Britain in practice. The partnership will enhance both UK and global security, and the Prime Minister underlined that nothing like it has been achieved since the 1950s. It will also deliver thousands of jobs and growth in the UK including in Barrow-in-Furness and Derby.

“The Prime Minister concluded Cabinet by saying the breadth of the work over just a few days demonstrated how the Cabinet was working as a team to deliver for the public.”

PM says issues between Lineker and BBC are ‘between them'

12:06 , Maryam Zakir-Hussain

Rishi Sunak has said issues between Gary Lineker and the BBC are “between them” and he looks forward to watching Match of the Day again.

Leader of the opposition Keir Starmer has said the prime minister should “stand up to his snowflake MPs” and stop “waging war on free speech”.

New mother says chancellor’s expected reform to childcare ‘changes everything’

12:04 , Maryam Zakir-Hussain

The mother of an eight-month-old baby has said the Government’s expected announcement to extend funded childcare for one and two-year-olds “changes everything” as the plans will allow her to return to work full-time.

Natalie Godfrey, a beauty therapist based in Bournemouth, said, while her son does not yet qualify for the funded childcare, she will be able to work full-time again come July if it goes ahead.

“It will make a huge difference to me (if) I do get the funding,” the 35-year-old told the PA news agency.

“I will be going back part-time, 22 hours (a week) but if I can build up my work column, I can work more hours when my baby turns one.

“I can’t afford the £70 per day fee... Many mums can’t go back to work after mat leave as the costs are too high - this changes everything and I for one am feeling very relieved that this will now enable me to get back to work.

“I think this is a very overdue step forward to help mums get back to work and be able to earn money rather than work to pay for childcare... It gives mums the freedom and flexibility with working hours and will help boost the economy.”

Watch live: Rishi Sunak faces Keir Starmer in PMQs ahead of 2023 Budget

11:58 , Maryam Zakir-Hussain

Rishi Sunak faces Sir Keir Starmer at PMQs ahead of Jeremy Hunt’s spring Budget today.

The pair will face off at the Dispatch Box before the chancellor delivers a much-anticipated statement in the House of Commons detailing his economic policy announcements.

Ahead of Mr Hunt’s official speech, the Treasury said that the energy price guarantee will be extended for three months beyond April.

Live: Rishi Sunak faces Keir Starmer in PMQs ahead of 2023 Budget

What time is the Budget statement?

11:50 , Maryam Zakir-Hussain

Jeremy Hunt will unveil his first Spring Budget since becoming chancellor today at 12.30pm, following Prime Minister’s Questions.

The Budget is set to introduce 12 new low-tax “investment zones” in a bid to kickstart the UK’s stalling economy and help “level up” areas outside of London. The chancellor is also understood to be ready to increase the tax-free allowance for pensions to encourage those who returned early to bolster the UK’s workforce.

The financial announcement comes as the International Monetary Fund (IMF) has warned the UK’s economy is likely to perform worst of any G7 nation this year.

Where can I watch the Budget live?

Who will be eligible for extended free childcare and when will it start?

11:45 , Maryam Zakir-Hussain

Chancellor Jeremy Hunt is set to use a “Budget for growth” to boost efforts to get people back to work, with a major expansion of childcare support set to form a key part of the package.

Reports of a multibillion-pound expansion of free childcare for one and two-year-olds received a tentative welcome on Tuesday, as parents and nurseries awaited the full details from the chancellor.

The plan is believed to include 30 hours a week of childcare for parents in England with one and two-year-olds, building significantly on the current provision.

Thomas Kingsley reports:

Who will be eligible for extended free childcare and when will it start?

Government asks National Grid to keep coal plants on standby for next year

11:41 , Maryam Zakir-Hussain

The government has asked National Grid to ensure that the coal power plants that have been on standby in case of a supply crunch this winter will remain available next year as well.

The coal plants were meant to be retired last year, but amid pressure on energy markets the government and the Electricity System Operator kept them as a backup power source.

So far the plants, run by Drax and EDF, have only been used once this winter, earlier this month when temperatures plummeted.

Watch: Jeremy Hunt presents red box outside Downing Street ahead of 2023 Budget

11:15 , Maryam Zakir-Hussain

Swimming pools group appeals to Scottish government for cash to stay afloat

11:10 , Maryam Zakir-Hussain

Leisure bosses are calling on the Scottish Government to follow the chancellor’s lead and extend “vital” help for swimming pools.

Community Leisure UK (CLUK), which represents charitable trusts operating swimming pools, warned money is desperately needed to deal with rapidly rising energy costs and other bills.

Amid fears some pools may be forced to close, CLUK said if chancellor Jeremy Hunt uses his Budget to provide financial aid south of the border, the Scottish Government must do the same.

Mr Hunt is expected to promise a £40 million one-year fund to make pools more energy efficient in the long-term, along with £23 million in cash grants to leisure centres with pools facing immediate cost pressures.

While this cash will not be available to pools in Scotland, additional money will come to the Scottish Government through the Barnett formula.

Robin Strang, chair of CLUK in Scotland, said it is “vital” Holyrood ministers follow Mr Hunt’s lead with financial aid.

He warned: “The impact of rising energy costs on swimming pools across Scotland is intensifying - and that pressure is only going to become greater.

“Operators of community swimming pools will face stark choices, including closures and service reductions, unless we can channel every ounce of financial help available to them.

“While we are still seeking greater action from the UK Government in terms of relief on energy bills, it’s vital that the Scottish government ensures the knock-on impact of the Chancellor’s announcement are made available to our sector.”

Martin Lewis thanks government for extending energy price guarantee

10:58 , Maryam Zakir-Hussain

Martin Lewis has thanked the government for extending the energy price guarantee for another three months.

Posting on Twitter, he said: “The Energy Price Guarantee 20% rise has been postponed from April to July - meaning in practice it’s cancelled. Exactly what my letter (below) to Chancellor asked for. Thanks to the govt for listening & to the 135 charities backing the campaign.”

Households ‘not out of the woods’ despite energy price guarantee extension

10:53 , Maryam Zakir-Hussain

Households are still facing a £67-a-month energy bill increase from April despite the “welcome” extension to the energy price guarantee at its current rate until the summer.

Ahead of his Budget speech, chancellor Jeremy Hunt confirmed that the EPG, which limits a typical household energy bill to £2,500, will be extended for another three months.

It had been due to increase to £3,000 in April to reduce the burden on state finances.

However, consumers still face having to find an extra £67 a month to pay their energy bills from April when the government’s separate Energy Bill Support Scheme - which has seen all households receive six monthly payments of £66 or £67 direct to their energy accounts - comes to an end.

Citizens Advice chief executive Dame Clare Moriarty said the “welcome step” of extending the existing EPG would protect millions of people from unaffordable energy bills.

But she added: “Unfortunately it’s not all good news. The withdrawal of the Energy Bill Support Scheme will still mean the average monthly bill rises by £67 from April.

“With millions already unable to afford their bills and energy prices set to remain high in the years ahead, the government must now look at long-term solutions to this problem.

“Many people, especially those on low incomes, will need ongoing support not only to pay their bills but to make their homes safer and warmer through improved energy efficiency.”

Live: Jeremy Hunt presents red box on Downing Street ahead of Budget

10:38 , Maryam Zakir-Hussain

Watch live as the chancellor presents a symbolic red box to Downing Street ahead of the spring Budget announcement today.

Live: Jeremy Hunt presents red box on Downing Street ahead of Budget

Mother who spends over £1,000 per month on nursery calls plan to extend funded childcare ‘life-changing’

10:25 , Maryam Zakir-Hussain

The mother of a 16-month-old has called the government’s expected announcement to extend funded childcare for one and two-year-olds “almost life-changing” for her family.

Nora Parr, a part-time academic based in Hornsey, north London, said she and her partner currently pay £1,040 a month for four half-days of nursery a week for their daughter.

“The news is exhilarating,” the 40-year-old told the PA news agency.

“We could apply for a mortgage, I could work more... (I) pick up the baby after lunch and finish work during her nap, every minute of childcare is spent on working hours.

“I could have five minutes to myself!

“The nursery is brilliant, but it takes a big chunk of our budget. The change to our finances would be almost life-changing... It would save us 1000+ a month.”

Watch live: Dominic Raab appears before Lords Committee ahead of Jeremy Hunt’s Budget

10:06 , Maryam Zakir-Hussain

Watch live as the Justice and Home Affairs Committee question deputy PM Dominic Raab MP ahead of Jeremy Hunt’s Budget speech.

The Committee will cover a wide range of topics, including the Secretary of State’s priorities for his department on budget day and the implications of the Government’s policy on the European Convention on Human Rights (ECHR) for UK-EU security cooperation.

Live: Dominic Raab appears before Lords Committee ahead of Jeremy Hunt's budget

Jeremy Hunt bids to head off critics with ‘Budget for growth’

09:55 , Maryam Zakir-Hussain

Jeremy Hunt is to unveil a “Budget for growth” designed to provide for the health service, pupils and pensioners as he seeks to silence critics in his own party.

The chancellor will say his measures go beyond helping Britain emerge from its brush with recession.

Instead, he will promise “long-term, sustainable, healthy growth that pays for our NHS and schools, finds good jobs for young people, provides a safety net for older people – all whilst making our country one of the most prosperous in the world”.

Mr Hunt is under pressure from supporters of ousted prime minister Liz Truss, who backed her focus on growth to revive the economy. The newly formed Conservative Growth Group, which claims it has 55 Tory MPs, is trying to put pressure on the government from the backbenches.

Our politics editor Kate Devlin reports:

Jeremy Hunt bids to head off critics with ‘Budget for growth’

Mass walkouts on Budget Day as teachers, junior doctors and Tube drivers strike

09:37 , Maryam Zakir-Hussain

Hundreds of thousands of workers will stage a strike on Budget Day in what threatens to be the biggest walkout since the current wave of industrial action started last year.

Members of several trade unions will take action, mounting hundreds of picket lines across the country amid continuing anger over issues including pay, jobs, pensions and conditions.

Those striking on Wednesday include teachers, university lecturers, civil servants, junior doctors, London Underground drivers and BBC journalists.

Despite talks being held between unions and the Westminster Government, the public sector strikes remain deadlocked.

Some of the strikes, such as those by teachers, will only be held in England as progress has been made in Wales and Scotland.

Mass walkouts on Budget Day as teachers, junior doctors and Tube drivers strike

Lib Dem Treasury says energy support extension ‘does not go far enough’

09:16 , Maryam Zakir-Hussain

Liberal Democrat Treasury spokeswoman Sarah Olney said the extension of the current energy price guarantee “does not go far enough”.

She said: “Instead of a sticking plaster for another three months, we need meaningful action now.

“The Liberal Democrats are calling on the Chancellor to cut energy bills by £500 per household. This would make a significant difference to households and the Government can afford to do it, they are choosing not to.

“In three months’ time families will once again be facing a cliff edge of unaffordable heating bills.”

SNP economy spokesman Stewart Hosie said: “It’s truly pathetic that the Chancellor has failed to cut energy bills, despite having ample resources to do so.

“The Tories are ripping families off by keeping bills at such exorbitantly sky-high levels, with many families forced to pay three times what they paid a year ago.”

Budget 2023: Jeremy Hunt to announce £4bn expansion of free childcare

08:50 , Maryam Zakir-Hussain

Chancellor Jeremy Hunt is set to announce a multibillion-pound expansion of free childcare to parents of one and two-year-olds in Wednesday’s Budget.

The plan is believed to include 30 hours a week of childcare for parents in England with children in that age group, with only parents with three and four-year-olds currently eligible.

The move could also see a £288m increase in funding for the current free childcare programme for three-year-olds by 2024-25, according to The Guardian.

Adam Forrest reports:

Jeremy Hunt to announce £4bn expansion of free childcare

Watch- Budget 2023: Energy price guarantee to be extended for another three months

08:37 , Maryam Zakir-Hussain

Energy support capping bills at £2,500 to be extended three months

08:15 , Maryam Zakir-Hussain

The energy price guarantee will be extended for a further three months from April to June at its current level, capping average annual household bills at £2,500, the Treasury has confirmed.

Mr Hunt will cancel the planned £500 hike in average energy bills which was due to come into force next month, in a move that would see bills for the average household staying at around £2,500, instead of going up to £3,000 as was previously announced.

The Treasury has come under increasing pressure in recent weeks to cancel the rise, which was set to come into force from 1 April.

Thomas Kingsley reports:

Energy support capping bills at £2,500 to be extended three months

How the price of alcohol will be hit by Hunt’s Budget

08:00 , Alisha Rahaman Sarkar

Drinkers are braced for a sobering Budget expected to include a double-whammy tax raid on alcohol that could see the cost of a bottle of wine increase by about 45p.

Jeremy Hunt, the chancellor, is primed to hike alcohol duty in line with inflation – currently running at an eye-watering 10.1 per cent.

And a separate tax targetting higher strength drinks is due to come into force despite the biggest cost of living squeeze for a generation.

Matt Mathers reports.

How the price of alcohol will be hit by Jeremy Hunt’s Budget

Who is taking part in the Budget Day walkouts?

07:45 , Maryam Zakir-Hussain

Hundreds of thousands of workers from several trade unions will strike on Wednesday in what threatens to be the biggest single day of industrial action since the current wave of unrest started last year.

These are the sectors affected by the Budget Day walkouts.

Who is taking part in the Budget Day walkouts?

When is Jeremy Hunt’s budget speech?

07:30 , Alisha Rahaman Sarkar

Jeremy Hunt will unveil his first Spring Budget since becoming chancellor today, with aims of boosting growth amid the ongoing cost-of-living crisis.

Mr Hunt is due to deliver his Budget to the House of Commons at 12.30pm, following Prime Minister’s Questions.

The chancellor is expected to reveal 12 zones clustered around universities – radically scaling back a scheme introduced by the former prime minister Liz Truss which saw hundreds of councils bid against each other.

Read more here.

When is Jeremy Hunt's budget speech 2023?

Energy price guarantee to be extended for another three months

07:21 , Maryam Zakir-Hussain

The energy price guarantee will be extended for a further three months from April to June at its current level, capping average annual household bills at £2,500, the treasury has confirmed.

The three-month extension of the energy price guarantee (EPG) at its current £2,500 level will save a typical household around £160, the government said.

Prime minister Rishi Sunak said: “We know people are worried about their bills rising in April, so to give people some peace of mind, we’re keeping the energy price guarantee at its current level until the summer when gas prices are expected to fall.

“Continuing to hold down energy bills is part of our plan to help hardworking families with the cost of living and halve inflation this year.”

The EPG had been due to rise to £3,000 in April, but falling energy prices mean that the current level can be extended to “bridge the gap” until costs fall below the cap.

Chancellor Jeremy Hunt, who included the measure in his Budget being unveiled today, said: “High energy bills are one of the biggest worries for families, which is why we’re maintaining the energy price guarantee at its current level.

“With energy bills set to fall from July onwards, this temporary change will bridge the gap and ease the pressure on families, while also helping to lower inflation too.”

What we know and what has been rumoured to be in the Budget

07:01 , Andy Gregory

With the Budget now just hours away, this report by Patrick Daly explains what you can expect to hear:

What we know and what has been rumoured to be in the Budget

Chancellor to announce £4bn boost for childcare

06:30 , Alisha Rahaman Sarkar

Chancellor Jeremy Hunt is expected to announce a £4bn expansion of free childcare for one- and two-year-olds in England.

The plan would provide extra 30 hours a week to parents of one- and two-year-olds, The Guardian reported.

It will also increase funding by £288m by 2024-25 for the existing programme of free childcare for three-year-olds.

Hunt expected to announce £8.6m funding boost for Edinburgh’s festivals

06:03 , Andy Gregory

Up to £8.6m of funding for Edinburgh’s festivals is expected to be announced in Wednesday’s Budget, reports Lucinda Cameron.

Some of the funding may go towards creating a permanent headquarters for the Fringe festival, which draws thousands of performers to Scotland’s capital each summer.

Hunt expected to announce £8.6m funding boost for Edinburgh’s festivals

‘Health and care chancellor’ urged to support social care in Budget

05:30 , Alisha Rahaman Sarkar

Funding for carers to have respite breaks should be doubled, a coalition representing older people has urged Jeremy Hunt as they dubbed him the “health and care chancellor”.

The Care and Support Alliance (CSA) said it is “imploring” Mr Hunt to use his Budget today to announce more investment in social care, including doubling government funding for carers’ breaks.

Age UK, which is a member of the CSA, said it had polled more than 1,600 carers aged 60 and above and found that 35 per cent have felt overwhelmed because of the care and support they provide, while 61 per cent sometimes or always worry about whether they would be able to keep caring or providing support.

Read more here.

‘Health and Care Chancellor’ urged to support social care in Budget

Editorial: The chancellor needs to end the abuse of apprenticeship levy funds

05:04 , Andy Gregory

In an editorial, The Independent has said that Jeremy Hunt and his colleagues “need to end the abuse of apprenticeship levy funds, as revealed by The Independent’s investigation.

It states: “Though hardly at the top of the chancellor’s list of priorities, the sums involved in these scams are material – at least £1bn. This is taxpayers’ money has been used over the past five years to fund 55,000 already high-earning executives to take courses that are equivalent to a master’s degree but are badged, absurdly, as “apprenticeships”.

“Indeed, some £100m has gone on funding MBAs, many for executives earning more than £100,000 a year – despite a government attempt to stamp this out two years ago. The rise of “apprenticeships” for management candidates appears to have come at the cost of the young, with 100,000 fewer under-25s starting apprenticeships than before the levy was introduced six years ago.

“It is outrageous that scarce resources should have been diverted in this fashion: would that those involved had steered their ingenuity to growing their businesses and taking on real apprentices, rather than exploring loopholes in a scheme that was never meant to subsidise them. The skills and apprenticeships minister, Robert Halfon, has vowed to crack down on the MBA scandal, and it can’t come soon enough.”

Editorial: The chancellor needs to end the abuse of apprenticeship levy funds

Jeremy Hunt bids to head off critics with ‘Budget for growth’

04:30 , Alisha Rahaman Sarkar

Jeremy Hunt is to unveil a “Budget for growth” designed to provide for the health service, pupils and pensioners as he seeks to silence critics in his own party.

The chancellor will say his measures go beyond helping Britain emerge from its brush with recession.

Instead, he will promise “long-term, sustainable, healthy growth that pays for our NHS and schools, finds good jobs for young people, provides a safety net for older people – all whilst making our country one of the most prosperous in the world”.

Kate Devlin has more.

Jeremy Hunt bids to head off critics with ‘Budget for growth’

What will happen to taxes in the Budget?

04:02 , Andy Gregory

Conservative MPs have been pushing for tax cuts – despite Jeremy Hunt so far appearing to be resistant to those calls, particularly on the issue of the planned corporation tax rise.

The business tax is due to go up from 19 to 25 per cent in April, under plans agreed during Boris Johnson’s premiership and Rishi Sunak’s tenure as chancellor.

All eyes will be on the chancellor to see if he offers any tax relief initiatives for businesses when he stands up in the Commons on Wednesday. He has already made a pre-speech announcement reflecting his desire to shock the economy into growth.

The Treasury chief will announce 12 new investment zones to “supercharge” growth in hi-tech industries.

Officials said the scheme – backed by £80m of investment over five years in each of the new high-growth zones – is designed to accelerate research and development in the UK’s “most budding industries”.

What we know and what has been rumoured to be in the Budget

03:40 , Alisha Rahaman Sarkar

The chancellor will unveil his Budget today as the country battles a cost-of-living crisis and a stalling economy.

Jeremy Hunt’s fiscal package comes in the wake of the autumn statement last November, which saw the chancellor hike taxes as he and prime minister Rishi Sunak sought to restore UK financial credibility after Liz Truss’s short-lived premiership.

With the UK narrowly avoiding a recession since and the latest economic figures giving reason for optimism, the chancellor is expected to focus his Budget on growth measures as he seeks to reignite the economy and encourage people back to the workforce after the Covid-19 pandemic.

Here is what has been briefed already and what we can likely expect in Mr Hunt’s first Budget since being appointed by Ms Truss last year.

Patrick Daly reports.

What we know and what has been rumoured to be in the Budget

Hunt to promise ‘sustainable, healthy growth’ in Budget

03:03 , Andy Gregory

Jeremy Hunt will pledge to tackle labour shortages and get people back to work when he delivers his Budget.

The chancellor is also expected to reference the “difficult decisions” taken last November to stabilise the markets, following the short-lived premiership of Liz Truss, as he outlines a plan he hopes can deliver “sustainable” growth.

“Today, we deliver the next part of our plan: a Budget for growth,” he is expected to say. “Not just growth from emerging out of a downturn.

“But long term, sustainable, healthy growth that pays for our NHS and schools, finds good jobs for young people, provides a safety net for older people ... all whilst making our country one of the most prosperous in the world.”

Mr Hunt will promise a growth plan that will remove “the obstacles that stop businesses investing” while also “tackling the labour shortages that stop them recruiting” and “breaking down the barriers that stop people working”.

Jeremy Hunt mulling raising cap on tax-free annual pensions contributions

02:05 , Andy Gregory

Jeremy Hunt is known to be considering raising the £40,000 cap on tax-free annual pensions contributions – and could reportedly hike it to £60,000.

Mr Hunt’s team has also looked at a possible increase in the lifetime allowance (LTA) on pension savings, another tweak Mr Hunt’s team has looked at. The tax-free lifetime amount could rise from £1.07m to as much as £1.8m, according to reports.

Meanwhile, other reports suggest that the UK state pension age could rise to 68 sooner than expected.

What cost of living measures are expected in the Budget?

01:03 , Patrick Daly

Jeremy Hunt is expected to cancel the planned £500 hike in the government’s ceiling for energy bill support which was due to come into force next month.

For the average household that means bills will stay at around £2,500, instead of going up to £3,000 as was previously announced.

On fuel duty, some Tory backbenchers have urged the chancellor to act to support motorists facing a 12p-per-litre hike in fuel duty in March. A 23 per cent increase in the duty is pencilled in for this month, but chancellors have repeatedly frozen the levy in the past. Mr Hunt has so far not said what he will do.

Action is expected on prepayment meters with the Chancellor set to end the so-called “prepayment premium” from July – which the Treasury expects will save more than four million households £45 a year on their energy bills.

Struggling public swimming pools will also be handed assistance to cope with their rising energy bills, with a £63m one-off pot to be created. Most of the money will be earmarked for leisure centres to invest in moving towards renewable energy forms.

Hunt told he is running economy like ‘Jeremy from accounts’

Tuesday 14 March 2023 23:59 , Andy Gregory

Speaking to Sky’s Sophy Ridge on Sunday show, the chancellor was told that he was running the economy “like Jeremy from accounts”.

He replied that “Jeremy the chancellor will be responsible with public finances, I make absolutely no apology for that”, adding: “What you will also see on Wednesday is that we have a plan to tackle the biggest problems we face as a country.”

Hunt vows to ‘go further to bear down on inflation'

Tuesday 14 March 2023 23:00 , Andy Gregory

Jeremy Hunt earlier vowed to ”go further to bear down on inflation” in Wednesday’s Budget.

“The jobs market remains strong, but inflation remains too high,” the chancellor said this morning. “To help people's wages go further, we need to stick to our plan to halve inflation this year.

“Tomorrow at the Budget, I will set out how we will go further to bear down on inflation, reduce debt and grow the economy, including by helping more people back into work.”

Job vacancies fall for eighth month in a row amid economic ‘uncertainty’, as Hunt prepares ‘back-to-work’ Budget

Tuesday 14 March 2023 22:01 , Andy Gregory

Vacancies across the UK have fallen for the eighth month in a row as firms hold back on hiring amid woes in the wider economy, official figures have shown as Jeremy Hunt prepares to unveil his “back-to-work” Budget.

The Office for National Statistics revealed a 51,000 drop in the number of job vacancies to 1.12 million in the three months to February, while the redundancy rate edged higher, which it said “reflects uncertainty across industries, as survey respondents continue to cite economic pressures as a factor in holding back on recruitment”.

Britain’s unemployment rate remained unchanged at 3.7 per cent in the three months to January, but the drop in vacancies signalled cracks in the jobs market as economic uncertainty weighs on companies.

The figures also showed there were 220,000 days lost to strike action in January, down from 822,000 in December, with schools the hardest hit.

Chancellor urged to use Budget to boost public sector pay in face of ‘mass exodus’

Tuesday 14 March 2023 21:03 , Andy Gregory

Jeremy Hunt has been urged to invest in public sector pay in the Budget, as new research by the Trades Congress Union (TUC) suggested nearly two in five workers are actively considering leave their profession – with a third citing low pay as a reason.

One in six public sector workers said they were skipping meals and one in 14 is using a food bank, according to the TUC – which warned that public services are facing a “mass exodus” of workers unless the current wave of pay disputes is resolved.

Unison union assistant general secretary Jon Richards said: “Decent public services are the bedrock of any society but they can’t exist without people to run them. It doesn’t take a rocket scientist to fathom that pay is key to keeping and attracting a motivated workforce.

“The government must invest in pay in the Budget so schools, hospitals, town halls and care homes can better compete with wages in the private sector. That would help boost staffing levels for everyone’s benefit.”

Video report: What to expect from Jeremy Hunt’s Spring Budget

Tuesday 14 March 2023 21:02 , Andy Gregory

Universal credit sanctions regime to be tightened in Jeremy Hunt’s ‘back-to-work’ Budget

Tuesday 14 March 2023 20:05 , Andy Gregory

The universal credit sanctions scheme is to be tightened in a new push by Jeremy Hunt to get hundreds of thousands of people into work, prompting concern among campaigners.

The requirement for benefits claimants who are lead carers of children to search for work are also to be strengthened, as part of a raft of measures the chancellor will announce on Wednesday in what he has branded his “back-to-work Budget”.

In an overhaul the government claimed was “the biggest reform to the welfare system in a decade”, the Work Capability Assessment – described as flawed by campaigners – is also to be axed.

But it comes as new Office for National Statistics figures showed the number of people off work in the UK due to long-term sickness is the highest since records began in 1993.

Universal credit sanctions scheme to be tightened in Hunt’s ‘back-to-work’ Budget

Plea for Hunt to support charities in Budget as ‘majority fear for their survival’

Tuesday 14 March 2023 19:08 , Andy Gregory

Pressure is mounting on Jeremy Hunt to provide targeted support for charities in his upcoming Budget, as new data revealed the extent to which falling donations are failing to keep up with soaring demand.

The chancellor was warned just days ago that half of charities fear they will not survive as the inflation crisis sees the cost of energy, rent and supplies skyrocket.

A group of more than 30 organisations wrote to Mr Hunt last week urging him to issue targeted funding for charities to support with energy costs and to increase payment for governmnet contracts in line with inflation.

Plea for Hunt to support charities in Budget as ‘majority fear for their survival’

‘Distinct feeling of confidence’ contagion won’t spread

Tuesday 14 March 2023 18:00 , Sam Rkaina

London’s top banking stocks like Standard Chartered, Barclays and HSBC had returned to growth on Tuesday after sinking into the red at the start of the week.

The FTSE 100 closed 88.48 points higher, or 1.17%, at 7,637.11.

Other European stocks managed to rebound after seeing even greater declines than the UK, with the German Dax moving 1.83% higher and the French Cac up 1.86%.

US investors started the day’s trading on a positive note, with the S&P 500 up 1.2% and Dow Jones up 0.65% when European markets closed.

Joshua Mahony, senior market analyst at online trading platform IG, said: “Market sentiment appears to have a turn for the better today, with equities throughout Europe and the US moving higher despite ongoing concerns over the health of the banking sector.

“The demise of Silicon Valley Bank brought concerns of further contagion throughout regional banks, leading to widespread calls over who could be the next to fall.

“However, while there are likely to be others which will have to write down bond market investments, parallels to the global financial crisis should be limited.

“With US banking stocks seeing widespread gains, there is distinct feeling of confidence that we will not see widespread issues arise throughout the financial sector.”

The pound slipped on Tuesday and was down by around 0.3% to 1.215 against the US dollar and down 0.1% to 1.1341 euros by the time markets closed.

UK top stocks claw back losses after Silicon Valley collapse

Tuesday 14 March 2023 17:34 , Sam Rkaina

The UK’s top stocks have clawed back some of the losses suffered on Monday after the collapse of Silicon Valley Bank prompted a global sell-off of banking stocks.

The FTSE 100 jumped by more than 1% on Tuesday afternoon, marking a rollercoaster session for the stock exchange which started the day firmly in the red.

But London’s top index did not manage to fully offset the 2.6% decline on Monday, which saw more than £50 billion wiped off its total value.

The failure of the tech-focused lender in the US sparked fears that the national’s financial system was beginning to buckle under the weight of a relentless series of interest rate rises.

It led some analysts to predict the Federal Reserve could leave the base rate unchanged at the next monetary policy meeting in efforts to stabilise the global economy.

But President Joe Biden sought to reassure Americans that the banking system was sound and people’s deposits were safe.

Nevertheless, he promised to look at new banking regulations to make it less likely that such a large bank failure can happen again.

All of the benefits, pensions and cost of living payments going out in March

Tuesday 14 March 2023 17:00 , Maryam Zakir-Hussain

This month many in the UK will still be looking anxiously at their energy bills and thinking twice about switching the heating on.

Ofgem has announced that its cap on the amount suppliers can charge for energy for average dual fuel, direct debit customers will fall by 23 per cent for the three months from 1 April to £3,280, from £4,279 for the January to March quarter. But campaigners warn that imminent changes to the government support measures, introduced last year to tackle soaring domestic energy costs, mean many could actually end up paying more.

Chancellor Jeremy Hunt has announced that the energy price guarantee – introduced by Liz Truss last September to ensure households paid no more than £2,500 for their electricity and gas, with the government subsidising the remainder permitted by the cap – would be increased to £3,000 from next month.

All benefits, pension and cost of living payments coming in March

Child Trust Fund: How to check if you are one of millions sitting on share of £2bn government money

Tuesday 14 March 2023 16:45 , Maryam Zakir-Hussain

Young adults could be entitled to a free sum of £1,900 if they access money amassed in unclaimed child trust funds (CFTs).

The National Audit Office (NAO) has warned that people are losing track of long-term tax free savings accounts set up under a Labour government for children born between 1 September 2002 and 2 January 2011, with more than a quarter of CFTs remaining untouched for a year or more after their owners turned 18.

Parents of the 6.3 million children born during the period were sent a £250 voucher shortly after their child was born, to open a fund. If they failed to do this before the child’s first birthday, HMRC opened an account on the child’s behalf.

Those from low-income families or in local authority care received vouchers worth £500.

Child Trust Fund: How to check if you can claim £1,900

How the price of alcohol will be hit by Jeremy Hunt’s Budget

Tuesday 14 March 2023 16:37 , Maryam Zakir-Hussain

Drinkers are braced for a sobering Budget expected to include a double-whammy tax raid on alcohol that could see the cost of a bottle of wine increase by about 45p.

Jeremy Hunt, the chancellor, is primed to hike alcohol duty in line with inflation – currently running at an eye-watering 10.1 per cent.

And a separate tax targetting higher strength drinks is due to come into force despite the biggest cost of living squeeze for a generation.

Some drink-makers have already increased the price of their products due to inflationary pressures and any further tax hikes would likely be passed on to consumers.

Matt Mathers reports:

How the price of alcohol will be hit by Jeremy Hunt’s Budget

Record number of workers on long-term sickness ahead of Hunt’s ‘back-to-work’ Budget

Tuesday 14 March 2023 16:36 , Maryam Zakir-Hussain

The number of Britons off work due to long-term sickness has reached record levels the latest official figures show, ramping up pressure on the Chancellor ahead of his “back-to-work Budget” on Wednesday.

Data from the Office for National Statistics (ONS) revealed that there were 2.52 million people off work due to long-term sickness in the three months to January – up 2.6% quarter-on-quarter and 7.9% year-on-year and the highest since record began in 1993.

The figures come as Chancellor Jeremy Hunt prepares to unveil his spring Budget on Wednesday, with measures expected to focus on getting people back into work to boost the flatlining economy.

Record number of workers on long-term sickness

What to expect from Jeremy Hunt’s Spring Budget 2023

Tuesday 14 March 2023 16:35 , Maryam Zakir-Hussain

Jeremy Hunt will unveil his Budget on Wednesday as the country faces the pressing issues of inflation, pay and public finances.

The Budget comes in the wake of the autumn statement last November, which saw the chancellor hike taxes as he and Rishi Sunak sought to restore UK financial credibility after Liz Truss’ short-lived premiership.

This time, the chancellor is expected to focus on measures that will get various cohorts back to work as part of a wider push to boost growth.

Here’s what we know so far and what we can likely expect in the Budget this week.

What to expect from Jeremy Hunt’s Spring Budget

Tuesday 14 March 2023 16:29 , Maryam Zakir-Hussain

Welcome to our liveblog where we will keep you updated with the latest ahead of the chancellor’s Budget tomorrow.

Stay tuned!