![]() ![]() These two factors combined mean the cost of fuel duty will rise by 23pc – an extra 12p per litre. A temporary 5p fuel duty cut, announced by Mr Sunak in March 2022, is also due to expire this March. Fuel duty cutsįuel duty is supposed to rise by RPI inflation in April, which would add 7p to the price of a litre of fuel. If he makes changes to the guarantee, he may take an approach that is more means-tested. Mr Hunt has made clear signals that he does not favour blanket support. However, in real terms it will only add around £4bn to the Government’s coffers as HMRC will also lose approximately £7bn in revenue from the energy windfall tax and corporation taxes on oil and gas companies as energy prices fall. Falling energy prices mean the Treasury will save an estimated £11bn on the Energy Price Guarantee. Sanjay Raja, of Deutsche Bank, has said additional support could be a “rabbit out of the hat” policy for Mr Hunt. This would cost around £3bn, she added.Īlthough energy prices are falling, households will see their energy bills spike by several hundred pounds this year as the government support is tapered. Support for businesses will also become more targeted.Ĭampaign groups such as Citizens Advice and business lobby groups have urged the Government to extend support to help protect the economy from still-high energy costs.Įmily Fry, of think tank the Resolution Foundation, said Mr Hunt should keep the energy bills support measure. The Government’s Energy Price Guarantee, which caps energy costs for households, is scheduled to rise from £2,500 to £3,000 on April 1. Think tanks have repeatedly flagged access to childcare as one of the most urgent and easily fixable issues that the government could target. The Treasury has been working with the Department for Work and Pensions to change how GPs issue sick notes, with a focus on continuing work with support instead of getting signed out of the labour force altogether.Īnother policy option is to reboot the benefits system, so that sick people who return to work part-time can continue claiming some sickness benefits.Ī further 1.7 million are parents who are staying at home to look after their children. One policy on the cards is a sick note crackdown. Getting long-term sick back into workĪnother 2.5 million economically inactive people are classed as long-term sick and Mr Hunt also wants to get many of this group back into work. Another option could be providing a tax incentive by lifting the pension lifetime allowance for senior doctors. The Government is looking at expanding its “midlife MOT” scheme to offer financial health checks to 50 to 64-year-olds. Mr Hunt, who has personally urged over-50s who have taken early retirement to go back to work, is expected to unveil new measures to encourage and retain older workers in the labour force. Of the 6.6 million economically inactive people, more than a million people have taken early retirement. A lack of staff is forcing employers to pay higher wages to attract people, which in turn is driving up prices. Not only is it a problem for productivity, it is also fuelling inflation. Treasury officials believe the number of people out of work is a major barrier to economic growth. ![]() The number of people neither working nor looking for a job has jumped by more than half a million people in the last three years. Excluding students, there are 6.6 million working aged adults who are classed as economically inactive. Mr Hunt’s primary focus with the Spring Budget will be to get Britain back to work. It will be accompanied by the latest economic and fiscal outlook from the OBR, the Government's spending watchdog. His statement is likely to focus on the Government’s aims to halve inflation, reduce public debt and boost economic growth. The Chancellor normally delivers his statement after Prime Minister's Questions, which typically finish at 12.30pm. Mr Hunt will deliver his Spring Budget in Parliament on Wednesday 15 March. The IFS has warned that the Office for Budget Responsibility may still downgrade its growth forecasts, which in turn would shrink the Chancellor’s capacity to spend. The Institute for Fiscal Studies, a think tank, estimates that borrowing this year and next will be £30bn less than previously expected.īut a temporary windfall from the Energy Price Guarantee does not open the door to long-term policy changes, with the Treasury consistently briefing that major tax cuts are off the table. Jeremy Hunt will next week deliver the second major fiscal statement of his time as Chancellor amid intense pressure to cut taxes.įalling energy prices and higher-than-expected tax revenues mean that the outlook for Mr Hunt’s Spring Budget is becoming a little less bleak. ![]()
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