Spring Statement at a glance

23rd March 2022

Fuel duty cut by 5p

 

Rishi Sunak is delivering his spring statement, aimed to help people through the cost-of-living crisis.

 

The first measure announced is a cut to fuel duty of 5p - the biggest cut to all fuel duty rates ever.

 

This will come into force at 18:00 tonight and will stay until March 2023.

 

0% VAT on energy-saving materials household support fund

 

For the next five years, homeowners will pay 0% VAT on energy saving materials, such as solar panels, heat pumps and insulating materials.

 

Household support fund

 

The government's household support fund - money given direct to councils to support vulnerable households - will be doubled to £1bn from April.

 

'Cutting taxes for hard working families'

 

Rishi has announced the largest single personal tax cut in a decade.

 

The government will raise the threshold for the amount people earn before they pay National Insurance, giving 70% of workers and effective tax cut.

 

'From July, you can earn £12,570 a year without paying a single penny of income tax or National Insurance'. A tax cut for employees with over £330 a year.

 

The health and social care levy of 1.25% will stay as funding for NHS and social care spending is ‘needed now’.  This will however be subject to the same threshold raised above.

 

Good news for small business with employees

 

From April, the Employment Allowance will rise from £4,000 a year to £5,000 a year.

 

What’s next?

 

News for the future, he also states that he expects inflation to be back under control by 2024 so has pledged to reduce the basic rate of income tax from 20p to 19p in the pound by the end of this parliament in the same year.