Please enable JavaScript.  This webapp requires JavaScript to work at its best.

Market News

What does the 2023 Spring Budget mean for investors?

28/03/2023

On March 15th, Chancellor Jeremy Hunt unveiled his Spring Budget: a Budget that contained a great number of elements that will affect individuals’ finances. Here are some of the key points that could affect investors. 

 

No change to tax reliefs and allowances

Hunt announced that there were no major changes to taxation or ISA allowances – no surprise, with him wanting to suppress rising prices and speed up debt reduction. 

 

Cost of living 

The Chancellor introduced a raft of measures in a bid to soften the blow of the spiralling cost of living. In addition to cutting fuel duty, his Budget included measures to cut the cost of both childcare and energy bills. 

By September 2025, working parents of children aged between nine months and two years will receive 30 hours of free childcare per week: something currently only available to those with children aged three or four. 

In terms of energy, the Energy Price Guarantee – which had been set to rise to £3,000 per annum in April – has been kept at its current level of £2,500 for a further three months. 

Inflation-wise, Hunt announced that price rises should be below 3% by the end of the year, compared to the 10% that they currently stand at. A fall in inflation should see many businesses posting stronger revenues, meaning the potential for share price appreciation for some businesses and sectors.

 

Changes to pensions

Previously, the pension Lifetime Allowance (LTA) – the amount that you can pay into a pension before needing to pay tax on it – had been frozen at £1.073m until 2026. From April 6th, that limit will be removed. The pensions annual allowance – the amount you can pay in yearly before paying tax – will rise from £40,000 to £60,000 on the same date, while the money purchase annual allowance for defined contribution pensions (the amount you can pay in if you’ve accessed your pension and still get tax relief) will rise from £4,000 to £10,000 a year. 

The aim, it’s suggested, is to keep people working for longer – or to encourage those that have left work because they were close to their pension limit to start working again. 

How will these Budget announcements affect your investments?

 

“Stable Rise Limited is not authorised or registered by the Financial Conduct Authority. The marketing materials are not intended to provide financial advice nor promote any individual financial products.”

Share this article

More reading
Forgotten your password?