15 March 2023
4 min read
On the 15th of March 2023, Chancellor Jeremy Hunt delivered the UK 2023 Spring Budget, setting out the government’s plans to reduce inflation, grow the economy, and reduce debt. Here is a summary of the policy decisions in the sectors which are of relevance to our clients.
Economic and fiscal overview
The UK Office of Budget Responsibility (OBR) now expects the UK to avoid a recession in 2023, although economic conditions remain challenging in the short term.
To support the life sciences industry, the government announced plans to reform the regulations to accelerate the approvals process for new medicines and medical technologies.
Twelve investment zones have been announced in the budget. Each zone will be eligible for funding to develop the growth of a targeted industry sector such as green industries, digital technologies, life sciences, creative industries, and advanced manufacturing. In England, each zone will have access to £80 million over 5 years.
Eight of the proposed areas for investment zones are in the Midlands and North of England, which reflects the government’s levelling-up strategy.
At OBM, we are surprised to see that hydrogen did not feature in the budget, despite the recent strong focus and funding from the UK government in this area. Furthermore, no new policies to enable investment into renewable energies were announced, although the Chancellor proudly mentioned that the UK is leading the world in the offshore wind sector.
At OBM we closely monitor economic policy in the UK and Japan, and its effect on international business and investment. If you would like to discuss how recent policy changes affect your business, then please contact us here.