Spring Budget: Prime’s predictions

Chancellor of the Exchequer Jeremy Hunt will deliver his Spring Budget on Wednesday, March 6, and it is set to be a significant one.

It is likely to be the final budget before the general election later this year, meaning it will be important not only in its content but in its impact on election manifestos.

The Chancellor has already spoken about his desire to lower taxes in the budget but has been advised to strike a cautionary note by many businesses after the UK slipped into a technical recession.

We asked our directors at Prime Accountants to give their predictions for the Spring Budget and what they think it will mean heading into the election.

Kevin Johns, Managing Director

I think it will be a very political budget with the Conservatives making tax cuts in future years and very little happening in April 2024.

This will be done to show a clear difference between them and Labour, forcing Labour into saying they will be reversing the tax cuts.

None of these changes will come in until 2025 onwards, so will be reversed after the election.

We will see another budget before Christmas after the election.

Paul Guise, Director

I’m expecting some tax reductions in the headline areas of tax for business and personal as an incentive for the voters leading up to the next election.

I’m also possibly expecting to see an extension to some of the ‘green policies’ around incentives for electric cars and renewable plant and machinery.

A rumoured change to the child benefit threshold cap of £50,000 would also be a welcome change. 

Steve Harcourt, Director and Coventry & Warwickshire Chamber President

It will be a vote-winning budget for the Conservative government, with the upcoming election likely to be in the early autumn.  The Chancellor will set out an optimistic picture for the UK in 2024/25, with announcements in investment linked to a growing economy.

Measures will be announced building on last year’s Autumn Statement to stimulate the economic growth requirement, as growth in the UK economy has been flat over the last two quarters of 2023, when the UK entered a technical recession.

There were not many tax giveaways in the Autumn Statement, as I believe the Chancellor will be setting these up in the forthcoming budget for businesses and individuals.

However, he will have to balance these tax cuts with the increasing requirement of public spending. 

Morgan Davies, Director

This budget is teeing up the Conservatives’ election manifesto. They need to make an impact as they are so far behind in the polls.

I could see an announcement of a reduction in corporation tax but for, say, 2025 or 2026. This will give the opposition something to think about and will be campaigned on up to the election.

There will possibly be an extension of the personal allowance, after it has been frozen for a while.

Join us LIVE on LinkedIn on Spring Budget Day (March 6) as our team of experts reflect on Chancellor Jeremy Hunt's financial plans and what they mean for West Midlands businesses.

Together with our colleagues at C&W Chamber of Commerce, we'll examine the budget in detail in a round table led by Prime Accountants director and Chamber president, Steve Harcourt. Sign up via our LinkedIn page.