Chancellor Rishi Sunak is set to outline support for British citizens when he delivers the Spring Statement.
The Spring Statement will begin following PMQs at 12:00 and Mr Sunak has pledged to “stand by” families to help them weather the crisis, with it being widely expected that he will cut fuel duty for motorists while Mr Sunak also considers increasing the threshold to begin paying national insurance (NI).
Spring Statement: Rishi Sunak urged to take action as households set for ‘fiscal…
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Last updated: Wednesday, 23 March, 2022, 13:37
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Here are the main points from Chancellor Rishi Sunak’s spring statement:
– Mr Sunak said by the end of the current Parliament in 2024, the Government would cut the basic rate of income tax from 20p in the pound to 19p which he said was “fully costed and fully paid for in the plans announced today”.
– The Chancellor said he would “stand by” households, and announced fuel duty would be cut by 5p per liter for a year up until March 2023.
– Mr Sunak said that “thanks to Brexit” he was able to remove VAT on materials such as solar panels, heat pumps or insulation to help bring down energy costs, as well as on wind and water turbines. He told the Commons: “We will abolish all the red tape imposed on us by the EU.”
– He also said he is doubling the Household Support Fund to £1 billion “to do more to help our most vulnerable households with rising costs” with “targeted support”.
– The Chancellor said he would publish a “tax plan” as he announced the national insurance contributions (Nics) threshold would rise by £3,000 “to fully equalize the Nics and income tax thresholds not incrementally over many years but in one go this year” .
Rachel Reeves hits out at Rishi Sunak saying “inflation is back” and dubs the chancellor “Ted Heath with an Instagram account”.
Rachel Reeves adds “It is shameful that he doesn’t, because when Martin Lewis predicts that 10 million people could be pushed into fuel poverty the Chancellor should sit up and listen.”
She added: “We know that pensions and social security are not going to keep up with inflation. Pensioners and those on social security are being given a real-terms cut in their incomes.
“So, what analysis has the Chancellor done of the impact of benefits being up-rated by less than inflation? How many more children and pensioners will drift into poverty because of… this Government?”
Rachel Reeves said the Government’s plan did nothing for people on the edge of fuel poverty or for pensioners who are facing a “real-terms cut” to their income.
Rachel Reeves tells the Commons: “Today was the day that the Chancellor could have put a windfall tax on oil and gas companies to provide real help to families, but he didn’t.
“Today was the day the Chancellor could have set out a proper plan to support businesses and create good jobs. But he didn’t.
“Today was the day he could have properly scrapped his national insurance hike, he didn’t.
“We said it was the wrong tax at the wrong time, the wrong choice. Today, the Chancellor has finally admitted he got that one wrong.
“Inflation is at its highest level for 30 years and rising. Energy prices at record highs. People are worried sick.
“For all his words, it is clear that the Chancellor does not understand the scale of the challenge. He talks about providing security for working families, but his choices are making the cost-of-living crisis worse, not better. ”
On the fuel duty cut, Rob Morgan, Investment Analyst at Charles Stanley, said: “5p cut in fuel duty amounts to about £50 a year for average car use, clearly helpful for motorists and even more so for transport industry but not a big move given the huge increase in prices at the pumps over the past couple of months.”
Boris Johnson congratulates Chancellor of the Exchequer Rishi Sunak after he delivered his Spring Statement in the House of Commons
Labor Shadow Chancellor Rachel Reeves says Rishi Sunak could have put a windfall tax on energy companies, or properly cut his national insurance increase, but opted not to.
She says that Sunak’s choices are making the cost of living crisis worse.
George Holan is chief editor at Plainsmen Post and has articles published in many notable publications in the last decade.