SPRING STATEMENT IN BRIEF: The key points of the Chancellor’s speech as it happens
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
- Britain has imposed ‘sanctions [against Russia] of unprecedented scale and scope’, says Sunak, but while these sanctions are working they ‘are not cost free for us at home’
- The war presents a risk for our economic 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 economy
- OBR: 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 years
- But lower growth outlook ‘has not affected our strong jobs performance’
- OBR: 7.4 per cent inflation average this year
- Public finances will worsen significantly as cost of financing debt grows
- £9billion plan to help 28million households to pay around half of April energy price cap
- Fuel duty cut 5p per litre – in place until March next year from 6pm tonight
- For next five years, no more 5 per cent VAT on insulation, solar panels etc. – will not apply to Northern Ireland
- 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 says
- Increase NICS threshold by £3,000, equalising threshold with income tax
- Levy to pay for NHS and social care spending