Spring Statement 2022 summary: Rishi Sunak’s key announcements at-a-glance

[ad_1]

Chancellor Rishi Sunak announced changes to income tax, fuel duty and National Insurance in his 2022 Spring Statement – but there was no increase to benefits as Brits face a cost of living disaster

Video Loading

Video Unavailable

Spring Statement: Rishi Sunak outlines plan for cutting taxes

Tory MPs crowed today as Chancellor Rishi Sunak announced big changes to tax in his Spring Statement.

The Chancellor raised the threshold at which workers start paying National Insurance to £12,570 – claiming it’d save some Brits £330 a year.

But this doesn’t factor in a 1.25 percentage point rise in the same tax – that’ll outstrip the saving for 30% wealthiest payers, and cut into it for middle-income families.

He also announced 5p a liter one-year cut in fuel duty.

And in a bombshell election vow ‘rabbit out of the hat’, he promised to cut the basic rate of income tax from 20p to 19p in the pound – but not now, only by 2024.

But the income tax and National Insurance changes don’t give a penny to Brits out of work – and nor does the fuel duty cut, if they don’t have a car.






The Chancellor raised the threshold at which workers start paying National Insurance to £12,570

Meanwhile there was no increase in benefits as Brits face a cost of living disaster, with inflation rising twice as fast as welfare and pensions.

“The Chancellor has made the wrong choices,” Shadow Chancellor Rachel Reeves fumed. She said it was just “jam tomorrow, rather than the support that is needed now” adding: “He’s not Nigel Lawson – he’s Ted Heath with an Instagram account!”

The bullet points below aren’t an exhaustive list of everything hitting you because some measures – like the minimum wage and cigarette and alcohol taxes – were already announced in the Budget.

They also don’t cover some of the biggest cost-of-living hits coming next month which the Chancellor did nothing to address. We’ve rounded those up here.

Are today’s announcements enough to support struggling families? Let us know: [email protected] The below points are being updated as more information emerges.

Inflation and economy

  • Inflation will average 7.4% across the next year – the highest in decades
  • Inflation will be ‘back under control’ by 2024 – TWO years from now, he said
  • Growth this year is revised down to 3.8% followed by 1.8%, 2.1%, 1.8% and 1.7% in following years
  • Unemployment is forecast to be lower than previously in future years, and is now 3.9%

Tax and wages

  • Threshold where workers start paying National Insurance will be raised by £3,000 – outstripping this April’s 1.25 percentage point hike in the tax for 70% of workers. Claimed it could be worth £330 a year – but that doesn’t include the amount the tax is going up by at the same time
  • Income tax main rate will be CUT from 20p to 19p – but not now, only ‘before the end of this parliament in 2024’
  • That will affect 30 million people and be the first cut to the basic rate of income tax in 16 years

Fuel duty, transport and infrastructure

Benefits and pensions

  • NO change to the below-inflation 3.1% rise in benefits and pensions next year
  • Household Support Fund is doubled by £500m but this is a backup fund for those in trouble

With UK inflation soaring to 6.2% – its fastest rise in 30 years – millions of households will be worrying about their own finances.

The 2022 cost of living crisis is hitting energy prices, fuel and the cost of food, with the government’s only solution so far to offer all households a £200 loan to help pay off their energy bills – which must be paid back eventually.

Chancellor Rishi Sunak’s Spring Statement is expected to announce a cut in fuel duty, although this will cost the Treasury billions without putting cash back in families’ pockets.

So how will the Spring Statement affect you?

If you need help with the cost of living crisis, we’ve put together a list of charities and schemes offering advice and grants to keep you and your family warm and fed this year.

business and technology

  • Employment Allowance will rise to £5,000 in April this year, a ‘new tax cut worth up to £1,000 for half a million small businesses starting in two weeks’ time’

  • Government will reform R&D tax credits and expand generosity to include data, cloud computing and pure maths

  • Treasury will consider whether to make R&D expenditure credit more generous

  • Chancellor will cut tax rates on business investment in Autumn Budget – but details not yet confirmed

Climate and aid

  • For the next five years families installing solar panels, heat pumps, and insulation will pay 0% not 5% VAT

  • Government will also reverse EU decision to take wind and water turbines out of scope and zero rate them too

  • Treasury claims families will save £1,000 in tax by installing solar panels

  • This measure can’t immediately apply to NI but raising with EU Commission as mater of urgency.

Read More

Read More



[ad_2]
www.mirror.co.uk

See also  'Ticking time bomb' mum sheds incredible 17 stone after suffering traumatic illness

Related Posts

George Holan

George Holan is chief editor at Plainsmen Post and has articles published in many notable publications in the last decade.

Leave a Reply

Your email address will not be published.