Chancellor Jeremy Hunt Announces Measures to Support Businesses and Households
- Corporation tax to rise from 19% to 25% for firms with profits over £250,000
- £9bn of full capital expensing on IT equipment, plant or machinery for next three years
- Energy Price Guarantee remains at £2,500 for households until June
- Fuel duty frozen for another 12 months, saving average driver £100-£200 per year
- Duty on draught products in pubs to be up to 11p lower than supermarkets
- Small businesses can claim a credit worth £27 for every £100 spent on research and development if they spend 40% or more
- No changes announced on VAT, income tax, or National Insurance levels
- UK economy forecast to grow 1.8% in 2024
- OBR predicts UK will not enter technical recession this year, inflation to fall from 10.1% to 2.9% by end of 2023
In the UK Spring Budget, Chancellor Jeremy Hunt announced a rise in corporation tax from 19% to 25% for firms with profits over £250,000. To offset this increase, businesses can deduct every pound spent on IT equipment, plant or machinery from taxable profits for the next three years. The Energy Price Guarantee remains at £2,500 for households until June, and fuel duty is frozen for another 12 months, saving the average driver £100-£200 per year. Duty on draught products in pubs will be up to 11p lower than supermarkets, including those in Northern Ireland due to the Windsor Framework. Small businesses can claim a credit worth £27 for every £100 spent on research and development if they spend 40% or more. No changes were made to VAT, income tax, or National Insurance levels. The Office for Budget Responsibility predicts no technical recession this year and falling inflation from 10.1% to 2.9% by end of 2023.
Factuality Level: 9
Factuality Justification: The article provides accurate and objective information about the Spring Budget measures announced by Chancellor Jeremy Hunt, including details on corporation tax changes, energy price guarantees, fuel duty freezes, support for small businesses, and economic forecasts from the Office for Budget Responsibility. It does not include any irrelevant or misleading information, sensationalism, redundancy, opinion masquerading as fact, bias, invalid arguments, logical errors, inconsistencies, or fallacies.
Noise Level: 6
Noise Justification: The article provides relevant information about the changes in corporation tax and various measures announced by the chancellor, as well as some relief for households and businesses. However, it lacks a comprehensive analysis of long-term trends or possibilities, and does not delve into the consequences of these decisions on those who bear the risks. It also could benefit from more evidence to support its claims and provide actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: UK corporation tax, energy prices, fuel prices, alcohol duty, small and medium-sized businesses investments, VAT, income tax, National Insurance levels
Financial Rating Justification: The article discusses changes to UK corporation tax, energy price guarantee extension, fuel duty freeze, alcohol duty, small business investment allowance, and no changes to VAT, income tax, and National Insurance levels. These topics directly impact financial markets and companies in the UK.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.
www.retailsector.co.uk