Six things we learned from the spring budget 2023
What the chancellor's announcement revealed about the government's plans for tax and spending policy.
![Jeremy Hunt, chancellor, outside No 11 Downing Street with the budget case in his hand.](/sites/default/files/styles/16_9_desktop/public/2023-03/jeremy-hunt-budget-2023-1504x846px.jpg?h=ca2fadeb&itok=tfJSwHAM)
On 15 March 2023, chancellor Jeremy Hunt presented his first budget. This set out the government’s plans for tax and spending policy. Alongside it, the Office for Budget Responsibility (OBR) published updated economic and fiscal forecasts for the next five years – running up to and beyond the next election. Here are six things we at the Institute for Government learnt from the chancellor’s announcement.
![Gas ring](/sites/default/files/styles/full_width_image_desktop/public/2022-12/gas-ring-flame-2880x920px.jpg?itok=Wt4nMcYS)
The chancellor used some of this fiscal space in the near term to keep the energy price guarantee limit at £2,500 per year for the average household.
![The Bank of England in London at nighttime.](/sites/default/files/styles/full_width_image_desktop/public/2023-03/bank-of-england-nighttime-2880x920px.jpg?h=17e6ff01&itok=zgTHV7fS)
The OBR has forecast that the UK’s GDP will be higher than previously expected at the end of the forecast.
![Jeremy Hunt walking down Downing Street with the autumn statement in his hand.](/sites/default/files/styles/full_width_image_desktop/public/2023-11/jeremy-hunt-walking-autumn-statement-2880px.jpg?h=42998be4&itok=x6kDPs98)
Jeremy Hunt's measures on spending increases and tax cuts have left the chancellor with just £6.5bn of headroom against his main fiscal rule on debt.
![A busy NHS hospital ward.](/sites/default/files/styles/full_width_image_desktop/public/2023-03/busy-hospital-ward-2880x920px.jpg?h=17e6ff01&itok=RuJOuZsa)
The notable omission from Hunt’s long speech was much discussion of public services.
![Aerial view of a motorway under construction](/sites/default/files/styles/full_width_image_desktop/public/2023-03/road-infrastructure-motorway-construction-aeriel-view-2880x920.jpg?h=17e6ff01&itok=0dt6GmDH)
The chancellor was silent on public sector capital spending plans.
![British pound and pennies](/sites/default/files/styles/full_width_image_desktop/public/2023-03/coins-hmrc-tax-form-2880x920px.jpg?h=17e6ff01&itok=MWWLnyPQ)
Jeremy Hunt announced a series of big tax giveaways in the budget, including a permanent increase in the generosity of pensions tax allowance.