Spring Statement 2022: Key points and top takeaways
The Office for National Statistics (ONS) announced that inflation had soared to 6.2%, the highest rate in 30 years, just a few hours before Sunak made his speech.
With the war in the Ukraine showing no signs of being over any time soon, and the economy under pressure, Sunak had some tough decisions to make.
Here’s what he announced:
Fuel duty cut
Sunak confirmed a fuel duty cut of 5p a litre to ease the pain for drivers facing soaring pump prices. This means duty will fall from 57.95p to 52.95p a litre for both petrol and diesel.
VAT scrapped on green home improvements
Homeowners insulating their homes or installing heat pumps or solar panels will no longer pay VAT on the cost. The VAT rate on these kind of home improvements will reduce from 5% to zero for the next five years.
Income tax cut
Basic rate taxpayers will pay 19p in the pound, down from 20p, in the first basic rate tax cut in 16 years. But this won’t take effect until 2024.
National Insurance threshold upped
The National Insurance threshold will rise by £3,000 from £9,570 to £12,570, saving the typical worker £330 a year from July.
Are the changes enough?
Charities and debt advice organisations have said that Sunak has not done enough to help people on Universal Credit or low incomes through the cost of living crisis.