The Chancellor announced his Spring Budget on Wednesday 6th April 2024. Positioned as a budget for growth it reflected the fiscal tightrope the Chancellor is treading.
The main headlines
The optimism from earlier in the year, fueled by lower borrowing costs, had suggested the government may have a theoretical “headroom” of £30 billion for the Chancellor to spend, potentially translating into tax cuts and voter-friendly measures.
However, this optimistic scenario hasn’t played out as hoped. By February, borrowing costs spiked again, and the government’s financial headroom shrunk substantially. Adding to the woes, official figures confirmed the UK economy entered recession in late 2023.
With the economy in recession and his spending power curtailed, Chancellor Hunt’s ability to deliver significant giveaways is significantly limited.
In this special edition of Citrus Bites, Richard Harris takes a look at what the Chancellor announced and considers what this means.
Citrus Bites, the latest financial news made bite size.
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