What happened in the Spring Statement 2022?
On Wednesday March 23rd 2022 the chancellor delivered his spring statement. Here are the key takeaways from his speech concerning personal finances and housing - some of our core focuses here at The Nottingham. To have a look at the statement as a whole, please visit the BBC News or GOV.uk websites as official sources.
Pay and wages
- There will be 0% VAT on energy saving materials, such as solar panels or heat pumps for homeowners for the next five years - a little helping hand if you're looking to make your home more eco-friendly by installing solar panels and the like.
- The government's household support fund which is the money they supply councils with to support vulnerable households will be doubled to £1bn from April.
Taxes and duties
- The government will raise the threshold for the amount people earn before they pay National Insurance by £3,000 from July. Sunak stated, "from this July, people will be able to earn £12,570 a year without paying a single penny of income tax or National Insurance." This would mean a £6bn personal tax cut for 30 million people in the UK and a tax cut for employees worth over £330 a year. This will be "the largest increase in a basic rate threshold ever, and the largest single personal tax cut in a decade."
- Before the end of this Parliament in 2024, the basic rate of income tax will be cut from 20p to 19p in the pound but this hasn't been given a definitive date.
- There will be a 5p cut to fuel duty - "the biggest cut to all fuel duty rates ever". He announced the cut will come into force at 18:00 tonight and last until March next year. According to the BBC, motoring group the RAC says cutting fuel duty by 5p will take £3.30 off the cost of filling a typical 55-litre family car.
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