Jeremy Hunt to unveil 'back to work' budget

Data from the Office for National Statistics (ONS) showed that there were 2.52 million people off work due to illness in the three months to January, the highest since records began in 1993.

Meanwhile the number of vacancies across Britain fell for the eighth month in a row as companies held back from hiring amid fears over a recession.

Yesterday Santander said that Uk companies should look overseas for opportunities to do business while the country continues to struggle with high inflation.

Today Jeremy Hunt will unveil his first spring Budget where he is expected to announce measures which will focus on getting more people back into work.

This will likely include the axing of the system to assess sickness benefits, in what would be one of the biggest reforms to the welfare system in a decade.

These include targeted incentives for the over-50s, sick, disabled and those on benefits, with the Chancellor referring to Wednesday’s announcement as his “back to work” budget.

However, Mr Hunt is expected to resist calls from Tory backbenchers to go further and cut taxes for millions of voters, and reference the “difficult decisions” taken to get the economy moving that were required following Liz Truss’ package of measures last year.

Lower than expected borrowing figures and a drop in the cost of wholesale energy prices has given the Chancellor some room to spend more on support for households, with an extension to the Government’s Energy Price Guarantee set to be announced as well.

“Today, we deliver the next part of our plan: a Budget for growth,” he is expected to say.

“Not just growth from emerging out of a downturn.

“But long term, sustainable, healthy growth that pays for our NHS and schools, finds good jobs for young people, provides a safety net for older people… all whilst making our country one of the most prosperous in the world.”

As with the previous prime minister, Mr Hunt is also expected to announce a range of measures for businesses to drive investment and innovation which will in turn grow the economy.

The Government has consulted on a replacement for the “super deduction” tax break for businesses, with groups calling on the Chancellor to make sure that a new set of business incentives will help offset the substantial rise in corporation tax, which the Conservatives have been urged to drop.

In addition to this, England will receive eight Investment Zones for combined authorities, which will focus on skills and innovation in regions such as West and South Yorkshire.

The tax breaks in these areas come alongside a £20 billion fund for carbon capture and green technology, with firms such as North Yorkshire’s Drax set to benefit.

Both Greater Manchester and the West Midlands will also be given next-generation devolution deals with “departmental-style” budgets, which will see powers moved away from Whitehall and into the hands of elected mayors in the country.

But Labour has said that Mr Hunt’s Budget speech is an opportunity for the Government to show some “real ambition” after years of “managed decline”.

Shadow chancellor Rachel Reeves said: “This Budget is an opportunity for the Government to get us off their path of managed decline.

“It’s a chance for them to recognise the huge promise and potential of Britain and get us growing again.”

Ms Reeves, speaking ahead of the Budget, said: “With 13 years of economic mismanagement and sticking plaster politics leaving us lagging behind, what we need to see on Wednesday is some real ambition from the Government.

“Labour’s focus would be on our mission to secure the highest growth in the G7. Our plan will help us lead the pack again, by creating good jobs and productivity growth across every part of our country, so everyone, not just a few feel better off.”