BUDGET 2023: Hunt ignores pressing needs of landlords and tenants

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The government failed to offer long-term support for energy efficiency improvements or increase the Local Housing Allowance in a Budget which instead focused on getting the country back to work.

Chancellor Jeremy Hunt extended support for energy bills at current levels of £2,500 for a further three months and brought the charges of the four million people on pre-payment meters in line with comparable direct debit charges.

However, he made no mention of the hoped-for incentives for landlords and homeowners to make properties greener in the run-up to changing EPC rules.

Housing groups will also be disappointed that he made no announcement about helping renters meet a shortfall in their payments through unfreezing LHA.

As part of its reform of the welfare system, the Chancellor pledged to fund a new Universal Support Programme to help disabled people get into work.

Hunt also promised that for those on Universal Credit – two million job seekers – sanctions would be applied more rigorously to those who refuse to look for work. The earnings threshold would increase from 15 hours per week to 18 hours.

Universal credit

Parents on Universal Credit will now receive up to £951 for one child and £1,630 for two children per month which would be paid upfront.

The government’s childcare reform plans should help those tenants with children under five who will get 30 hours of free childcare a week from the end of maternity leave.

As previously announced, corporation tax will rise from 19% to 25% on 1st April, affecting portfolio landlords and those with limited companies.

However, no tax burden relief was offered to the sector, but neither was the rumoured increase in Stamp Duty.

For those landlords looking to the future, Hunt announced an increase in the pensions annual tax-free allowance from £40,000 to £60,000 while he also abolished the Lifetime Allowance – previously set at £1.07m.

Read the HMRC full briefing notes in full.

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