Chancellor announces Spring Statement
Chancellor Rishi Sunak announced a 5p per litre cut in fuel duty for petrol and diesel in the 2022 Spring Statement.
The government says it is the¬†largest¬†ever cut on all fuel duty rates, which applies from 6pm on 23 March 2022.
The Chancellor also announced that the starting thresholds for national insurance contributions (NICs) will rise to ¬£12,570.
From 6 July 2022 employees earning between ¬£242 (¬£190 from 6 April to 5 July 2022) and ¬£967 per week will pay NICs at 13.25%. Earnings over ¬£967 will attract a 3.25% charge. Employers will pay 15.05% on their employees‚Äô earnings over ¬£175 per week.
Although employees‚Äô NICs only become payable once earnings exceed ¬£242 per week, any earnings between ¬£123 and ¬£242 per week protect an entitlement to basic state retirement benefits without incurring a liability to NICs.
For the self-employed, where their profits exceed ¬£11,908 per annum, they will pay 10.25% on the profits up to ¬£50,270 and 3.25% on profits over that upper profits limit.
However, from April 2022, there will be a temporary increase in the rates of NICs payable for employees, employers and the self-employed as a transitional provision in readiness for the introduction of the Health and Social Care Levy from April 2023.
Mr Sunak also pledged that the basic rate of income tax will be cut by 1p in the pound in April 2024. By then the Chancellor said that the Office for Budget Responsibility (OBR) expects inflation to be back under control, with debt falling sustainably.
From April 2022, a¬†¬£1,000¬†increase to the Employment Allowance will benefit SMEs, while there will be no business rates due on a range of green technology¬†used to decarbonise buildings.
In addition, the Chancellor announced¬†50% business rates relief¬†for eligible retail, hospitality, and leisure properties.
In his Spring Statement speech, the Chancellor said:
‚ÄėThis statement puts billions back into the pockets of people across the UK and delivers the biggest net cut to personal taxes in over a quarter of a century.
‚ÄėCutting taxes means people have immediate help with the rising cost of living, businesses have better conditions to invest and grow tomorrow, and people keep more of what they earn for years to come.‚Äô
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