Budget 2023 live: Jeremy Hunt announces 30 hours of free childcare and extends energy bill support

Corporation tax for businesses is to increase from 19% to 25%, which had previously been announced. This will cover firms who make a profit of more than £250,000 from April. The Chancellor says only 10% of companies will pay the full rate.

Announcing “two further commitments to deliver our nuclear ambitions”, Hunt said: “Firstly, following representations from our energetic Energy Security Secretary I am announcing the launch of Great British Nuclear which will bring down costs and provide opportunities across the nuclear supply chain to help provide up to one quarter of our electricity by 2050.

“And secondly, I am launching the first competition for small modular reactors. It will be completed by the end of this year and if demonstrated to be viable we will co-fund this exciting new technology.”

Money Editor Henry Sandercock says: "Jeremy Hunt says the UK is on track to meet his fiscal rules with national debt ‘falling’ as a percentage of GDP (it will rise before going down again) and the budget set to return a surplus. Could he be providing himself with wiggle room for a big pre-General Election fiscal splurge in the autumn or next spring?"

On the Chancellor’s decision to move ahead with the increase in corporation tax and changes to capital expensing, Toby Ryland, from accountancy firm HW Fisher, said: “The Chancellor has missed a huge opportunity to ease the pain for all small businesses across the country - not just those in the new investment zones. By deciding to go ahead with the corporation tax rise from April 1st, the Chancellor has added an extra burden to British businesses at a time when they need all the help they can get.

 “Full capital expensing is a very welcome measure to encourage investment, but we’ll need to see the small print to see how much this benefit in reality offsets the increase in corporation tax. At the least it will bring a long overdue simplification of the current complex rules around capital allowances.”

The Chancellor says the UK doesn’t need energy subsidy, but instead needs energy security, Money Editor Henry Sandercock says. He’s gone big on nuclear, aiming for the industry to provide 25% of the country’s electricity by 2050. But this will be a blow to households and businesses hoping for extra help to lower their energy bills through home insulation and boiler upgrade grants.

Now the Chancellor is getting into the meat of his "back to work" Budget. He says he is making “biggest change to our welfare system in a decade”.

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

He told MPs: “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 and put in place the support they need. It will fund 50,000 places every single year.”

Mr Hunt said the Government also wants to help those who are forced to leave work because of a health condition, such as back pain or a mental health issue.

He said: “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.”

Part of Jeremy Hunt's back to work Budget, is to get people on Universal Credit "into work". He says: "Sanctions will be applied more rigorously to those who fail to meet strict work-search requirements or choose not to take up a reasonable job offer.

"For those working low hours, we will increase the Administrative Earnings Threshold from the equivalent of 15 hours to 18 hours at National Living Wage for an individual claimant, meaning that anyone working below this level will receive more work coach support alongside a more intensive conditionality regime."

A large proportion of people who are classified as "economically inactive" - i.e. not in work - are those over 50 who have already retired. Hunt wants these people to go back to work, saying he wants to make "it easier for people to work longer". Good luck there Jeremy!

Hunt says he will enhance the DWP’s "excellent ‘Mid-life MOTs’ Strategy". He will also introduce a "Returnership" apprenticeship for over 50s who want to return to work.

And he will abolish the lifetime allowance limit on pensions. Hunt said the changes would “stop over 80% of NHS doctors from receiving a tax charge” and incentivise “our most experienced and productive workers to stay in work for longer”.

James Kirkup, who used to be the Telegraph's executive politics editor and now is Director of the Social Market Foundation thinktank, says this is a "regressive policy". He put together a Twitter thread on this yesterday, saying: "There may be staff retention benefits to raising pension lifetime allowance & annual allowance. But it’s still a regressive giveaway to a very small rich minority."

Jeremy Hunt says he wanted to reform the childcare system, warning: “We have one of the most expensive systems in the world. Almost half of non-working mothers said they would prefer to work if they could arrange suitable childcare."

Hunt says the government will increase funding paid to nurseries providing free childcare under the hours offer by £204 million from this September and rising to £288 million next year.

Hunt says that minimum staff-to-child ratios will increase from 1:4 to 1:5 for two-year-olds in England, as happens in Scotland.

He adds that for parents on Universal Credit wanting to move back into work, the government will pay childcare costs up front.