16 March 2023 - Budget for pensions and childcare

Jeremy Hunt delivered a Budget yesterday in which he lent heavily on outside agencies opinions on the UK economy for validation of the Government’s strategy for a revival of growth post-pandemic and post Brexit. The IMF, which had been severely critical of the plans put forward by Liz Truss during her brief term as Prime Minister, commented recently that the strategy that the country is following will, in time, reap the rewards of steady, if not spectacular growth and controlled inflation. The Chancellor made two bold statements that formed the cornerstones of the entire presentation. Again leaning heavily on the views of outside agencies, this time the Office for Budget Responsibility, He predicted that the UK economy will not face a recession this year, and by year-end inflation will be below 3%. In what he labelled a back to work budget, Hunt, as expected, provided four billion pounds in additional support for childcare in order to encourage parents to be able to consider a return to the workplace. One move that drew heavy criticism for the opposition benches was the scrapping of the upper limit on private pension pots before they attract tax. Beyond Currency Market Commentary: Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.