Budget 2023 live today: Jeremy Hunt delivers spring manifesto and says ‘UK will not enter recession’

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

Referring to the reforms introduced by Sir Ian Duncan Smith when he was working and pensions secretary, Jeremy Hunt told the House of Commons: “The number of people with disabilities in work has risen by two million since 2013. But even then we can fill half of the vacancies in the economy with people They say they would like to work despite being inactive due to illness or disability.

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

It is for this reason that the tireless Minister for Work and Pensions is today taking the next step in his groundbreaking work in tackling economic inactivity. I thank him for that, and today we’re publishing a white paper on reforming disability benefits. It is the biggest change to our welfare system in a decade.

His plans would abolish the ability to work assessment in Great Britain and separate entitlement to benefits from an individual’s ability to work. As a result, disability benefit claimants will always be able to look for work without fear of losing financial support.”

The chancellor announced an “artificial intelligence sandbox” to boost support for the UK’s AI business, 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 pilot new and faster approaches to help innovators bring cutting-edge products to market, working with the Intellectual Property Office to provide clarity on hard-hitting IP rules. AI companies can access the material needs, and requests Sir Patrick Vallance’s successor, Dame Professor Angela Maclean, to report before the summer on options on growth duty to the Regulators.”

He added: “Because AI requires computing horsepower, I am committing today around £900m of funding to implement the recommendations in the Future of Compute Review for an Exascale supercomputer. It could also provide the power needed by complex AI algorithms through quantum computing.

“So today we are publishing a quantum strategy that will set out our vision of being a leading global quantum-enabled economy by 2033 with a research and innovation program totaling £2.5 billion.”

Jeremy Hunt confirmed that nuclear power would be rated as “environmentally sustainable” to drive investment in the energy sector, and said he would launch “Great Britain Nuclear” to cut costs.

The Chancellor said: “To encourage private sector investment in our nuclear programme, I am confirming today that, under the consultation, nuclear power will be classified as ‘environmentally sustainable’ in our green designation, giving it access to the same investment incentives as renewable energy. Along with this will come more Public investment.

Announcing “two further commitments to achieving our nuclear ambitions”, he added: “First, following representations from our energetic Minister for Energy Security, I am announcing the launch of Great British Nuclear which will reduce costs and provide opportunities across the nuclear supply chain to help provide up to a quarter of our electricity needs. by 2050.

And secondly, I will launch the first small modular reactor competition. It will be completed by the end of this year, and if it proves viable, we’ll co-finance this exciting new technology. “

The chancellor said the government would not rest until the UK became “the most dynamic institutionalized economy in Europe”.

He told MPs: “We already have lower levels of business taxation than France, Germany, Italy and Japan. But I want us to have the most pro-business, pro-enterprise tax system anywhere. Even after the corporation tax increase in April, we will have the lowest major rate in the group.” Seven – less than at any time under the last Labor government.

“Only 10% of companies will pay the full 25% rate. But even at 19%, our corporate tax system has not incentivized investment as effectively as countries with higher prime rates.”

Mr Hunt also laid out the measures the government has already put in place to encourage business investment, telling the House of Commons: “For larger companies we’ve got the Super Discount, introduced by the Prime Minister, which ends this month.

“For small businesses, we have increased the annual investment allowance to £1m, which means 99% of all businesses can deduct the full value of all their investments from that year’s taxable earnings.”

Jeremy Hunt announced a “full spend” policy for the next three years and the intention of making it permanent.

He explained: “This means that every pound a company invests in equipment, plant or IT machinery can be fully and immediately deducted from taxable profits. It is a corporate tax break of an average of £9 billion per year for each year applied.”

The measure is expected to lead to increased investment in the business, Hunt said.

He added, “I understand that the counterparty (the business) is reviewing business taxes. Let me save them the trouble. They put it in, we cut it.”

For drilling, Jeremy Hunt said the £500m earmarked would be increased by a further £200m next year to help communities “tackle this problem”.

Mr Hunt also said: “For Scotland, Wales and Northern Ireland, this budget not only introduces a new investment area, but an additional £320m for the Scottish Government, £180m for the Welsh Government and £130m for the Northern Ireland Executive. As a result Barnett fallout.

Further in Scotland, I can announce target funding of up to £8.6m for the Edinburgh Festivals as well as £1.5m funding for the repair of Cloddach Bridge.

“I will provide £20m of funding to the Welsh government to restore Holyhead breakwater and, in Northern Ireland, up to £3m to expand the Paramilitary Remediation Program and up to £40m to expand higher and further education engagement.”

The chancellor announced a series of settlements and local transportation-related financing.

Jeremy Hunt told the House of Commons: “I will be investing over £200m in high-quality domestic regeneration projects across England including the Tipton town center regeneration and Marsden New Mills redevelopment scheme. He has also announced a further £161m for regeneration projects in the authorities Joint Mayoral and Greater London Authority.

“I will provide more than £400m for new Leveling Up partnerships in areas including Redcar, Cleveland, Blackburn, Oldham, Rochdale, Mansfield, South Tyneside and Bassetlaw.

“Having heard the case for improving local transport infrastructure from many members, I am able to announce a second round of sustainable transport settlements for the city area, with £8.8 billion allocated over the five-year funding period.”

Mr Hunt, presenting his spring budget on Wednesday, said he would “significantly increase the generosity of the relief draft” which he said could not have been done within the EU.

Mr Hunt told MPs: “From 1 August charges on draft produce in pubs will be 11p less than charges in supermarkets, a differential we will hold as part of the Brexit pub guarantee. British beer may be warm, But the assignment on the pint is frozen.”

Mr Hunt said the change would apply to “every pub in Northern Ireland” because of the Windsor framework.

Jeremy Hunt has set out the economic forecast for the next five years, claiming that the UK will now not enter a recession.

He said: “Let’s now turn to what the Office of Budget Affairs says about our growth prospects. In November they predicted the UK economy would enter recession in 2022 and contract by 1.4% in 2023. That has many families worried. regarding the future.

But today, the Office for Budget Responsibility projected that we will not enter a recession at all this year with a contraction of just 0.2%. After this year, the UK economy will grow in each year of the forecast period: by 1.8% in 2024; 2.5% in 2025; 2.1% in 2026; and 1.9% in 2027.”