What does the Chancellor’s announcements on the budget mean for public sector?
With a difficult economic environment as the backdrop, Chancellor Jeremy Hunt presented the Spring Budget on 15 March 2023.
The Chancellors Budget announcements were largely focussed around increasing capacity within the workforce and encouraging investment in significant capital expenditure. Whilst the economic forecast from the OBR was perhaps slightly better than anticipated, time will tell whether either of these focus areas will achieve the desired outcome across the economy and particularly, the Public Sector and the healthcare sector.
Although most of the major initiatives were heavily trailed in the days leading up to the Budget, the announcement of the 12 Investment Zones alongside measures designed to shift greater power and funding towards Local Authorities are likely to impact on a range of public sector organisations. The Chancellors overt aim is to stimulate the economy through 4 key pillars – Enterprise, Education, Employment and Everywhere - with greater collaboration between private and public organisations such as universities.
And with the Capital Allowances “Super Deduction” regime coming to an end, the announcements regarding the new 100% first-year allowances for qualifying expenditure incurred on plant and machinery for three years were well received and whilst the relatively short term nature of the new regime and lack of cash component may be of some concern, it will be interesting to see whether they have the desired effect on business investment results.
What are the implications for government sectors?
You can click on the industry below for a deeper dive into the impact on the sector:
The effect on communitiesLearn more
Consequences on infrastructure and transport servicesLearn more
The impact on the ability to deliver citizen-centric servicesLearn more
Implications for institutions, educators and studentsLearn more
Health and Social Care
The impact on the workforce and patient servicesLearn more
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