23 Mar, 2022

Spring Statement 2022

23 Mar, 2022

The UK economy has emerged from the pandemic in a strong position to meet these challenges. The success of the government’s COVID-19 vaccine rollout and the Plan for Jobs have helped support a quicker than expected recovery and a strong labour market, with the total number of payrolled employees now over 600,000 above pre-pandemic levels. Tax receipts have been stronger than expected, which has contributed to borrowing falling this year and over the forecast period. The improvement seen in the public finances has created additional headroom against the government’s fiscal rules, which the government has prioritised using to deliver reductions in tax.

The government has already taken significant steps to help with the cost of living. This includes a cut to the Universal Credit taper rate and increases to work allowances to make sure work pays; the £9 billion package announced in February to help households with rising energy bills this year; and freezing alcohol duties and fuel duty to keep costs down.

The government is taking further action in the Spring Statement to help households. A significant increase to the National Insurance Primary Threshold and Lower Profits Limit will allow hard-working people to keep more of their earned income. A temporary 12 month cut will be introduced to duty on petrol and diesel of 5p per litre, representing a saving worth around £100 for the average car driver, £200 for the average van driver, and £1500 for the average haulier, when compared with uprating fuel duty in 2022-23. To help households improve energy efficiency and keep heating bills down, the government will expand the scope of VAT relief available for energy saving materials and ensure that households having energy saving materials installed pay 0% VAT.

To read more – https://www.gov.uk/government/publications/spring-statement-2022-documents/spring-statement-2022-html