• GBP/USD is lower (at 1.2020*), but that is a factor of broader market risk aversion
• GBP/EUR is up nearly 1% on the session

This is reflective of the pound broadly faring much better and is perhaps a bigger sign of a positive market reaction to Budget.

The ongoing fallout from the SVB crisis has now morphed into vulnerable bank stocks, such as Credit-Suisse. We often see this in times of uncertainty when investors flock to the relative safety of the US government treasuries. Read more here.

Key outcomes from the budget:

• Free childcare of 30 hours per week for working parents is being expanded to cover one and two-year-olds. This will extend to all children from 9-months old in September 2024.
• There will be a major shake-up to benefits for people with disabilities. The Work Capability Assessment will be scrapped in favour of a new assessment that will encourage more disabled people to try work without fear of losing their benefits.

Energy Prices

• The government’s help with energy bills is being extended for a further three months
• £200m has been earmarked to help brings bills in-line with direct debit payers for customers using pre-payment meters
• There will be £63m to help leisure centres cope with rising energy bills

Pensions

• The lifetime allowance on tax-free pension contributions, which currently stands at £1.07m, has been scrapped
• The annual tax-free allowance has also increased from £40,000 to £60,000.

Tax

• Fuel duty has been frozen for another year
• Corporation tax is being increased (as planned) from 19% – 25%
• Alcohol tax on draught products in pubs is to be up to 11p less in the pound compared to shops and supermarkets

Environment

• Hunt has made a £20bn commitment over 20 years on low-carbon energy projects, with a focus on carbon storage and capture
• Nuclear power is to be re-classed as 'environmentally sustainable' to drive investment in the energy sector.

Defence

• Defence spending is being boosted by £11bn over the next five years

*Indicative rate as of 15/03/23 at 16:42

This does not constitute financial advice.