Spring Budget 2023: Key points for Wales from the budget

"A budget for growth" as described by Mr Hunt during his speech in parliament today is set to deliver "long-term, sustainable, healthy" future for the UK as the Government aims to tackle the cost of living in the short term. 

Mr Hunt said: “Today, we deliver the next part of our plan. A Budget for growth.

“Not just the growth that comes when you emerge from a downturn, but long-term, sustainable, healthy growth that pays for our NHS and schools, finds jobs for young people, and provides a safety net for older people all whilst making our country one of the most prosperous in the world.

"Prosperity with a purpose.”

Jeremy Hunt unveiled his 2023 Spring Budget in parliament today. (Image: PA)

But what effects can we expect in Wales?

Here are the key points from Mr Hunt's 2023 Spring Budget that will impact Wales: 

What the Welsh Government wanted from the budget

Ahead of the Chancellor’s Spring Budget, Wales’ Finance Minister, Rebecca Evans outlined what they were hoping to see from the budget.

She said: "The UK government’s Spring Budget is being delivered in the face of the continuing cost-of-living crisis, with energy and food prices remaining high.

"The Chancellor has the powers to make better use of his welfare and tax levers, as well as room in the public purse, to ease the challenges being experienced by households and businesses.

"This must be used to immediately support those most vulnerable - including practical actions to support people with energy costs, housing needs and welfare benefits.

"Maintaining the £2,500 Energy Price Guarantee beyond April would be an integral part of this."

Here’s a recap of the top things you need to know from today’s Spring Budget.  

Click the link below to read more ⬇️https://t.co/KgEvSpeTCf pic.twitter.com/dVLEf12DHp

— HM Treasury (@hmtreasury) March 15, 2023

NHS and public sector funding was also something Ms Evans said needed to be addressed.

She added: "It is imperative the Chancellor acts on NHS and public sector funding and restores pay for public sector workers to real terms.

"The NHS turns 75 this year and it is a real opportunity to invest and reform.

"Our own budget is worth up to £1 billion less in real terms in 2023 to 2024, so we need to see the UK government properly invest in public services in recognition of the erosive impact of inflation across the country.

"I have written to the Chancellor and met with the Chief Secretary to the Treasury to stress the need for real investment in Wales, our people, and its public services - this Spring Budget is the time for meaningful action."

Key points from the budget for Wales

Energy bill prices to remain the same

Chancellor Jeremy Hunt this morning announced the extension of support for household energy bills. 

The Chancellor confirmed that the energy price guarantee, which caps average household bills at £2,500, will be extended at its current level from April to June.

It had been due to rise to £3,000. 

Funding for new voluntary employment scheme in Wales

Jeremy Hunt said the Government will fund a new programme called “universal support” in England and Wales.

This is a new, voluntary employment scheme for disabled people where the Government will spend up to £4,000 per person to help them find appropriate jobs while also putting in place the support they need.

It will fund 50,000 places every year.

Mr Hunt said the Government also wants to help those who are forced to leave work because of a health condition.

He added: “I am also announcing a £400 million plan to increase the availability of mental health and musculoskeletal resources and expand the individual placement and support scheme.”

Welsh Government to receive £180 million to 'tackle this problem' of potholes

The Welsh Government have been allocated £180 million to tackle potholes. (Image: PA)

Mr Hunt revealed £500 million worth of funding, plus an extra £200 million next year, would be allocated to “tackle this problem” of potholes.

The Welsh Government will receive £180 million while an additional £20 million of funding will be allocated to restore the Holyhead Breakwater. 

Reducing the cost of energy for businesses

The Chancellor said he would take both short and long-term measures to reduce the costs of energy for businesses.

Mr Hunt said: “I will extend the Climate Change Agreement scheme for two years to allow eligible businesses £600 million of tax relief on energy efficiency measures.

"But the long-term solution is not subsidy but security. 

“That means investing in domestic sources of energy that fall outside Putin or any autocrat’s control.

"We are world leaders in renewable energy so today I want to develop another plank of our green economy, Carbon Capture Usage and Storage (CCUS).”

He also said the Government would allocate up to £20 billion of support for the early development of CCUS, starting with projects "from the East Coast to Merseyside to North Wales" – paving the way for CCUS across the UK.

Mt Hunt added: "This will support up to 50,000 jobs, attract private sector investment and help capture 20-30 million tonnes of CO2 per year by 2030.”

Jeremy Hunt delivering his Spring Budget (Image: PA)

Nuclear Power to be classed as “environmentally sustainable”

Mr Hunt confirmed nuclear power would be classed as “environmentally sustainable” to drive investment in the energy sector, and said he would launch “Great British Nuclear” to bring down costs.

The Chancellor said: “To encourage the private sector investment into our nuclear programme, I today confirm that subject to consultation nuclear power will be classed as ‘environmentally sustainable’ in our green taxonomy, giving it access to the same investment incentives as renewable energy.

"Alongside that will come more public investment.”

He added he would be launching the first competition for small modular reactors.

Mr Hunt said: "It will be completed by the end of this year and if demonstrated to be viable we will co-fund this exciting new technology.”

Childcare scheme changes

Currently, under the Childcare Offer for Wales, you could claim up to 30 hours of early education and childcare a week, for up to 48 weeks of the year.

This government-funded childcare scheme aims to lessen the burden of childcare costs for families.

The Welsh Government said the offer has already helped parents from all over Wales to return to work, increase their hours or work more flexibly.

Under new plans announced by the chancellor today, 30 hours of free childcare for all under-5s from the moment maternity care ends, where eligible, will be available.

A new childcare package has been announced to support eligible working parents.

Working families will have access to 30hrs free childcare per week for children aged between 9 months and 4 years.

— HM Treasury (@hmtreasury) March 15, 2023

Jeremy Hunt told the Commons: “I today announce that in eligible households where all adults are working at least 16 hours, we will introduce 30 hours of free childcare not just for three- and four-year-olds, but for every single child over the age of nine months.

“It’s a package worth on average £6,500 every year for a family with a two-year-old child using 35 hours of childcare every week and reduces their childcare costs by nearly 60%.

"Because it is such a large reform, we will introduce it in stages to ensure there is enough supply in the market."

Working parents of two-year-olds will be able to access 15 hours of free care from April 2024, helping around half a million parents.

From September 2024, that 15 hours will be extended to all children from nine months up.

Then from September 2025 every single working parent of under 5s will have access to 30 hours of free childcare per week.

The Chancellor also announced increased draught relief for pubs.

Mr Hunt said: “Today, I will do something that was not possible when we were in the EU and significantly increase the generosity of Draught Relief, so that from 1 August the duty on draught products in pubs will be up to 11p lower than the duty in supermarkets, a differential we will maintain as part of a new Brexit pubs guarantee.

“British ale may be warm, but the duty on a pint is frozen.”

Duty freeze for pub beer

The Treasury said: "The duty on average strength draught beer sold in pubs across the UK will be frozen. This will help the hospitality sector including pubs and restaurants."

This would mean that the duty paid for draught beer in pubs would be 11p lower than the tax paid by supermarkets.

The Chancellor said: “Today, I will do something that was not possible when we were in the EU and significantly increase the generosity of Draught Relief, so that from 1 August the duty on draught products in pubs will be up to 11p lower than the duty in supermarkets, a differential we will maintain as part of a new Brexit pubs guarantee.

“British ale may be warm, but the duty on a pint is frozen.”

Fuel duty also frozen

Mr Hunt announced the 5p per litre cut in fuel duty will be extended.

The 5p per litre fuel duty has been extended. (Image: PA)

In his Budget, the Chancellor confirmed the reduction that was introduced in March 2022 will continue for another 12 months.

Hunt also confirmed fuel duty is not going to increase in line with inflation.

The average driver will save £100 over the next 12 months, Mr Hunt said.

Closing remarks from Jeremy Hunt

Concluded his Budget speech, Mr Hunt claimed the Budget delivered growth on top of the “stability” of the autumn statement.

The Chancellor said: “In November we delivered stability. Today it’s growth.

“We tackle the two biggest barriers that stop businesses growing – investment incentives and labour supply.

"The best investment incentives in Europe. The biggest ever employment package. For disabled people, more help. For older people, barriers removed.

"For families feeling the pinch: fuel duty frozen, beer duty cut, energy bills capped. And for parents, 30 hours of free childcare for all under fives.

"Today we build for the future with inflation down, debt falling, and growth up."