Spring Statement: Rishi Sunak leaves 11 Downing Street

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Chancellor Rishi Sunak told MPs in the House of Commons that “today’s statement builds a stronger, more secure economy for the United Kingdom”. Mr Sunak outlined how the Government will look to aid individuals who are suffering from financial hardship as a result of the ever troublesome cost of living crisis.

The Spring Statement provides Mr Sunak with a second opportunity in the financial year to update Britons on the health of the UK economy and any changes the Treasury will be implementing.

During his speech the Chancellor revealed alterations for various taxes such as fuel duty, VAT and National Insurance.

He said: “Cutting tax is not easy, it requires hard work and the willingness. This Government has been prepared to make those difficult choices.

Taxes are being cut, debt is also falling, spending is increasing. This doesn’t happen by accident. We can deliver for the British people because we have a plan.”

Did you keep up to date with Mr Sunak’s full statement? Did the Chancellor go far enough? Have your say in the comments.

1) Fuel duty slash

One of the major announcements made by Mr Sunak was that he would be cutting fuel duty by 5p per litre. 

He said: “For only the second time in 20 years, fuel duty will be cut. Not by one, not by two, but by 5p a litre – the biggest cut to rates forever.

“Some have called for the fuel duty cut to last until August. I have decided it will be in place until March next year, a full 12 months.

“It’s a tax cut this year worth over 5 billion.”

2) 0% VAT for green initiatives

Announced he will scrap VAT on energy efficiency measures such as solar panels, heat pumps and insulation installed for five years.

He said: “We’ll also reverse the EU’s decision to take wind and water turbines out of scope – and zero rate them as well. And we’ll abolish all the red tape imposed by the EU. A family having a solar panel installed will see tax savings worth over £1,000. And savings on their energy bill of over £300 per year.”

Mr Sunak said the policy will not apply immediately to Northern Ireland due to “deficiencies” in the Northern Ireland Protocol but said support would be offered.

3) Household support fund

Doubling the household support fund to a billion pounds with 500 mil of funding, local authorities are best placed, they will receive this funding from April

4) National Insurance contributions threshold raised by £3,000

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

“It’s a £6bn personal tax cut for 30 million people in the UK.

“It’s worth over £330 a year and is the largest increase in a basic rate threshold – ever.”

5) Employment Allowance

Mr Sunak has announced that the Employment Allowance for business will increase from £5,000 from next month

6) Income Tax

Basic rate of income tax will be cut from 20 to 19p in the pound before end of current parliament in 2024

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