Weve reached the end of March!
This month, UK Chancellor Jeremy Hunt delivered the Spring Budget, introducing several changes affecting businesses and the tax sector.
Here is your roundup of the business and tax news from March 2023.
Interest Rates Rise
The Bank of England announced that interest rates would rise to 4.25% following an unexpected increase in inflation to 10.4% in February.
The inflation rate was forecast to fall to 2.9% by the end of 2023.
The Office for Budget Responsibility said that the UK was likely to avoid a recession, although the economy was expected to contract by 0.2% during 2023.
Payroll Benefits Deadline
The deadline to register with HMRC to payroll employee benefits during the 2023/24 tax year was 5 April 2023.
Businesses needed to register on or before this date to qualify.
Back in Business Rate Support Scheme to Close
The Northern Ireland Department of Finance announced that applications for the Back in Business rate support scheme would close on 31 March 2023.
The scheme had been operating since April 2022, helping businesses across Northern Ireland benefit from rates support.
It provided small businesses with greater financial security while helping to regenerate high streets.
Applications Open for Create Growth South East
There was good news for creative businesses in the South East, as applications opened for Create Growth South East.
The programme offered businesses specialist support designed to help them prepare for future investment and growth.
Paul Marshall, Leader of West Sussex County Council, said: The future wellbeing of the county is reliant on the growth of a sustainable and prosperous economy.
As outlined in our council plan, we will focus on supporting new and existing businesses, and the Create Growth Programme is the perfect example of that.
The creative industries make a huge contribution to the economy, and West Sussex County Council is committed to supporting ambitious businesses to realise their potential.
The Create Growth Programme offers a fantastic opportunity for these creative businesses to attract investment for growth.
Retail Sales Receive a Boost
Retail sales increased as consumers turned to second-hand and discount stores.
During the cost-of-living crisis, more consumers used these retailers to purchase essential items. This contributed to a 1.2% increase in sales during the monththe largest rise recorded since October 2022.
The Office for National Statistics said that sales volumes had returned to pre-pandemic levels, although they remained 3.5% lower than the previous year.
Levelling Up Programme to Continue
In the Spring Budget, Jeremy Hunt revealed plans to create 12 new investment zones in areas including the West Midlands, Greater Manchester, Liverpool and Teesside.
Each area would need to develop a proposal centred around a university or research institution. Successful areas would receive £80 million in support.
An additional £400 million would also be provided for levelling up partnerships in areas including Redcar and Cleveland and Rochdale.
Looking Ahead
That brings us to the end of another month. Have a great April, and remember to watch for further changes affecting the world of business and tax.