On Wednesday 15th March 2023, Chancellor Jeremy delivered his Spring Budget in the House of Commons, providing an update on the health of the economy under the key areas of “Enterprise, Education, Employment and Everywhere”.

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TBOS shares our feedback on the Spring Budget 2023…


  • Tax-Free yearly allowance for pension pots to increase from £40,000 to £60,000

  • Abolishment of lifetime pension savings allowance

TBOS Comment

These tax incentives are mainly aimed at the over 50’s to try and incentivise them to return to work or not retire early.


  • £20bn investment in Carbon Capture projects which could provide over 50,000 new jobs

  • Nuclear energy classed as environmentally sustainable for investment purposes

  • £63m help for leisure centres and swimming pools to become more energy efficient

  • £200m in fixing potholes

  • £900m funding into AI research to create a new super computer facility

TBOS Comment

These investments will mean that there are many opportunities for recruitment agencies providing candidates into the IT, energy, engineering and construction sector to make more placements.


  • 30 hours of free childcare expanded to cover children from 9 months to 5 years to be phased in by September 2025

  • Incentive scheme for childminders with a payment of £600 for those looking to sign up to the profession

  • The launch of Apprenticeships or “Returnships” to encourage the over 50’s to return to the workplace

  • Abolishment of Work Capability Assessment for Disabled People to enable disabled people to seek work without losing benefits

TBOS Comment

These plans will hopefully help plug the recruitment gap where there are more jobs than candidates and will allow mothers and disabled people to work and entice the over 50’s to return to the workplace.


  • Corporation tax will rise from 19% to 25% from April 2023 on profits above £250,000

  • Corporation tax on profits between £50,000 and £250,000 will be taxed at between 19-25%, with the rate of tax increasing with the higher profits. 

  • Enhanced credit of £27 for every £100 spent on R&D if this amounts to above 40% of the total company expenditure

TBOS Comment

The increase in Corporation tax rates has been on the cards for a number of years but there is now clarity on the threshold before this increases to 25%.  The additional tax relief on R&D benefits is also welcomed for agencies developing their own processes and systems.


  • Fuel Duty frozen for the next 12 months

  • Alcohol Duty to rise in line with inflation from August but a drop in duty for draught drinks in pubs

  • Tax on tobacco to increase by 2% above inflation and 6% on hand rolling tobacco

TBOS Comment

The cut in Fuel Duty will be welcomed by most car owners although with the cost of fuel continuing to increase, this will potentially only provide a saving of around £100 over the next 12 months for the average car driver.  The drop in duty for drinks in pubs will be music to recruiters’ ears for those who like to celebrate a deal!

Guide To Recruitment Finance

Image source: Canva

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