The UK is not expected to enter a technical recession this year, and inflation is predicted to reduce to 2.9% by the end of 2023, according to the Office for Budget Responsibility (OBR).
Other key points of the 2023 budget include the introduction of 15 hours of free childcare for parents working 16 hours a week, the abolition of the lifetime allowance on pension savings, and an extension of the 5p cut in fuel duty.
The government will also abolish the work capability assessment for disabled people and separate benefit entitlement from an individual’s ability to work.
The prepayment premium will be scrapped from July, enabling four million families to save £45 a year on their bills, and defence spending will rise to £11bn over the next five years.