SPRING STATEMENT HIGHLIGHTS

Against the back drop of the fastest cost of living rises in a generation, and with inflation now at a 30 year high of 6.2%, the Chancellor of the Exchequer made the annual spring statement.


HIGHLIGHTS:-


NATIONAL INSURANCE THRESHOLDS


NICS threshold to rise by £3,000 will rise to mirror the Income Tax threshold to £12,570 in July 2022.


The planned National Insurance rise from April 1st of 1.25% to pay for improvements in the health and social care sector, as expected goes ahead.


COST OF LIVING


"We will stand by people and want to help people now with three measures"

  1. Fuel duty cut by 5p per litre in place for 12 months from 6pm tonight

  2. Standardise 0% VAT on all energy efficient products including solar panels, heat pumps and insulation for 5 years

  3. Help most vulnerable targeted support with £500m to double the household support fund from April 2022, delivered via local councils



INCOME TAX


In 2024 income tax will be cut to 19% from 20%


BUSINESS


"The government plans to create a new culture of enterprise, with the private sector training more, investing more, and innovating more."


Final decisions will be announced in the autumn budget, including the future of the apprenticeship levy


Cut tax rate on business investments in the autumn budget


Highlight waste in research and development tax credits and streamline for smaller companies


EMPLOYMENT ALLOWANCE


Increased to £5,000 from April 2022


You can read the full statement here.