Chancellor Rishi Sunak delivers Spring Statement

Today, 23rd March 2022, Chancellor of the Exchequer Rishi Sunak made his Spring Statement.

Against a backdrop of the ongoing conflict between Ukraine and Russia and the rising cost of living – including prices increasing on fuel and food, with a 3o-year record increase in inflation for February 2022 (6.2%), the Chancellor announced the following:

Fuel cost crisis measures

Fuel duty will be cut by 5p per litre from 6pm tonight until March 2023.

Green Tax Cut: For the next 5 years, homeowners can install energy saving materials at 0% VAT – such as solar panels or heat pumps.

Doubling the Household Support Fund to £1 billion. Local Authorities will be given this funding to support those in need in their local areas.

Taxes and National Insurance

From July, people will be able to earn £12,570 a year without paying any income tax or National Insurance. 

Basic rate of income tax will be cut from 20% to 19% in 2024

Help for small businesses

Discounts for  retail, hospitality and leisure businesses – 50% discount on business rates bill up to £110,000, taking effect from next week, 1st April 2022

Reform on R&D Tax credits from April 2023 – data, cloud computing, pure maths, with more information to be announced in the Autumn Budget

From mid April, the Employment Allowance will increase from £4,000 to £5,000

Exemption on business rates for green technology. A 100% relief for eligible low-carbon heat networks which have their own rates bill will also be available

Plans to encourage greater business investment once the super-deduction ends in 2023

See all the details here in the Spring Statement documents on gov.uk