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Spring Statement

By March 23, 2022No Comments

Spring Statement – Updates

 

Todays Updates brings some welcomed changes, after seeing the highest rise in prices in 30 years(6.2%). Here are the main points from the Spring Statement.

Some welcomed changes announced by Rishi Sunak in todays Spring Statement seeing:

  • The Office of Budget Responsibility (OBR) forecast a growth for the UK economy of 3.8% down from there previous prediction of 6.0%
  • Annual inflation set to continue to rise from 6.2% (February 22) to a peak of 8.7% by the end of 2022 averaging 7.4% for the rest of 2022
  • Unemployment rate set drop lower every year in OBR’s forecast, currently sitting at 3.9% with numbers predicted to be 400,000 lower than pre Covid by 2027
  • Borrowing expected to fall from 83.5% of GDP to just over 79% by 2026/2027
  • Fuel duty to be reduced by 5p per litre till March 2023
  • NI (National Insurance) threshold will rise to £12,570 in July from £9,880
  • Rishi Sunak has pledged to cut Income Tax (basic rate), from 20% to 19%
  • No VAT to be applied for homeowners installing energy efficient materials
  • Help offered again to vulnerable households seeing the rising costs of living with another £500m given to local authorities for the Household Support Fund from April 2022
  • Employer Allowance set to increase from £4,000 to £5,000 from April 22, which gives relief to smaller businesses NI payments