Chancellor should target under 30s in the Spring Budget

Chancellor of the Exchequer Jeremy Hunt should target the under 30s in his Spring Budget, our poll suggests.

Putting aside the support offered to first time buyers, the poll results suggest that previous Budgets and Autumn Statements ignore the financial needs of young adults, favouring pensioners and businesses instead.

Who needs the most help from this Budget?

• Under 30s: 50%
• 30 to 40: 35%
• 41 to 50: 7%
• Over 50’s: 8%

What do you most want to see from the Chancellor’s Spring Budget?

• Cost of living support: 56%
• Green policies: 10%
• Business support: 5%
• Tax cuts: 3%

Laurence Parry, Tax Partner, offers his advice on the measures Jeremy Hunt may wish to announce in his Budget on 15 March.

“The Government has found various pots of cash to help homeowners with energy costs and its triple-lock commitment on state pensions. But it has done very little to help those starting and building their careers.

“Given the perilous state of the retail and hospitality sectors, the Chancellor could look to remove employer’s NIC for those between 18 and 24. This would help the employees and the businesses.  More left field – he could simply gift the 7 million under 30s say £300 each. That cash will in most cases find its way back into the economy, giving a much-needed lift to the high street and night-time economy.

“Alternatively, he may wish to introduce a tax break for those entrepreneurial under 30s who start a business. The Prince’s Trust has a great track record in supporting young people in business – the Chancellor could do worse than a direct contribution to that organisation.

“More welcome support would be a review and cap of the interest rates charged on student loans. The rate currently stands at 9%, which means for many students that student loan continues to grow despite making monthly repayments.

“It is perhaps time for the Government to recognise that a student loan is indeed a graduate tax and structure it in such a way that lowers the interest payable.”

The Spring Budget announcement will take place on 15 March 2023. Join our ‘Budget question time webinar’ on 17 March 2023 to find out how you can adapt to the changes that are announced.

Book your place now.