SPRING STATEMENT IN BRIEF: What it means for you and the economy
SPRING STATEMENT IN BRIEF: The key points of the Chancellor’s speech as it happens
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Chancellor Rishi Sunak stood up to deliver a high-pressure Spring Statement at 12.30.
Below we itemise the key announcements as they’re delivered. Please hit refresh for latest.
As households across the country face a growing cost-of-living crisis, Chancellor Rishi Sunak reveals the Government’s response
Impact of Ukraine war ‘Sanctions of unprecedented scale and scope’ – these sanctions are working but ‘are not cost free for us at home’ It presents a risk for our recovery, which had been growing faster than expected before the invasion It is too early to know the full impact of the war on the UK economyOBR: UK GDP growth of 3.8 per cent this year – down from forecast of 6 per cent – then will be 1.8 per cent, 2.1 per cent and 1.8 per cent in the following three yearsLower growth outlook has not affected our strong jobs performanceOBR: 7.4 per cent inflation averagePublic finances will worsen significantly as cost of financing debt grows
Energy costs
£9billion plan to help 28million households to pay around half of April energy price capMotorists, fuel duty cut 5p per litre – in place until March next year from 6pm tonightFor next 5 years, no more 5% VAT on insulation, solar panels etc. – will not apply to Northern Ireland
Taxes
Increase in National Insurance threshold: ‘From this July, people will be able to earn £12,570 a year without paying a single penny of income tax or National Insurance,’ says Sunak. Income tax basic rate cut from 20p to 19p Business tax cuts coming this Autumn Retail, hospitality and leisure industry to get 50 per cent cut on business rates up to £110k Small businesses’ employment allowance increase to £5,000, worth up to £1,000 per business Tax plans will help families with cost of living, create conditions for higher growth, and share proceeds for growth fairly, Sunak saysIncrease NICS threshold by £3,000, equalising threshold with income taxLevy to pay for NHS and social care spending
