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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

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

Energy costs

  • £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 

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 says
  • Increase NICS threshold by £3,000, equalising threshold with income tax
  • Levy to pay for NHS and social care spending 

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