What can we expect in the March Spring Budget 2023?

Where has the time gone? We’re rapidly coming up to the 15th of March, when chancellor Jeremy Hunt will be announcing his Spring Budget. Essentially, the Spring Budget is a fiscal statement to both MPs and the general public, providing us with an update on the general state of the economy, and what the government’s plans are for it going forward.

It's Hunt’s second fiscal statement since becoming chancellor, and it’s one that will likely still be taking steps to distance itself from the disaster of the mini-Budget back in September 2022, under Liz Truss’ government.

The Budget is obviously going to affect the operations of anyone in the logistics or haulage sector, so if you’ve ever bought any fuel theft prevention products like TankSafe Optimum from us, you’re going to want to hear what Hunt has to say. And if you’re short on time, we thought we’d sum up some of the most likely key inclusions for you.  

The likely key points of the March Spring Budget

We should address one of the most-discussed points right out of the gate. The chancellor is unlikely to announce any short-term tax cuts – even though some MPs have been pushing for them – as there are concerns this could fuel inflation. Any tax cuts that are announced would likely be more long-term, so taxpayers probably won’t immediately feel the benefits. 

On that theme: inflation is an ongoing priority, and along with many other experts, we’re expecting Hunt to adopt a cautious approach, especially after the chaos of the mini-budget last year. Mr Hunt has already been clear that one of his key priorities will be on filling job vacancies and tackling economic inactivity.

He might have more wiggle room on some of those priorities than he expected – the government got an unexpected boost to its coffers recently from the UK’s self-employed quarter, resulting in a surprise £5.4 billion surplus (the best kind of surprise). However, he’s still not likely to deviate from that generally cautious approach – at least not until we’re closer to a general election.

We also expect him to announce some changes to the way pensions work in the UK; pension allowances could change for example, but the flipside is that the state age pension may increase, which won’t be quite as welcome news. There have also been calls from some quarters for him to look at the way ISAs work too, in order to make things safer for savers in the UK.

Energy support is also a big one. As you might expect, there’s been a major call for energy support from the government but as things stand, households probably won’t get extra support with energy bills. The Energy Price Guarantee currently caps the annual household budget to £2500, but that looks likely to rise to £3000 on the 1st of April. In turn, that’s likely to have a big impact on the cost of living.  

What about the fuel duty cut?

Ah yes, this is the big one that we know a lot of our readers will be most concerned about. To quickly recap: last Spring, then-chancellor Rishi Sunak announced a 5p cut per litre to fuel duty. That was originally due to finish at the end of March 2023, but there are now signs that could yet be extended – which will be welcome news to private and commercial drivers alike. The alternative is for the chancellor to let the levy rise by 12p per litre, which is currently assumed in the Treasury’s fiscal plans.

Right now, there are no clear signs as to whether Mr Hunt has made a firm decision either way, though the government appears to be wavering on the issue. Personally, we strongly suspect that fuel duty will go up, but here at TankSafe we will campaign for it not to – it’s grossly unfair to our customers, as well as to our industry as a whole, when business owners are constantly under pressure.

The already-devastating cost-of-living also may well pose additional issues in that it can increase the risk of fuel theft – not necessarily from criminal gangs, but also internally from employees who may be desperate for ways to cut their daily living expenses. 

If that fuel theft is something you’re particularly concerned about, that’s where we can help here at TankSafe. For starters, we’ve previously written a useful guide on what to do if you suspect one of your employees of fuel theft. What’s more though, we’re committed to help you prevent the immediate risk of theft, with a range of fuel theft prevention devices – including TankSafe Optimum, the only product to guarantee 100% protection from fuel theft.

If you have any questions regarding any of our products, or you simply need some advice, feel free to head over to our FAQs page, where we answer some of the most commonly asked questions regarding our products and services. Alternatively, you can give us a call on 01253 400 401, and we’ll be happy to help however we can!