Spring Statement 2022 Headlines
Today the Chancellor Rishi Sunak gave his Spring Statement which is usually of little significance compared to a Budget. But with Easter around the corner he pulled several rabbits out of the hat. In advance of our detailed guidance tomorrow here are the headlines from his speech:
- Fuel Duty to be cut by 5p per litre from 6pm tonight
- VAT on energy saving materials in residential properties to be cut from 5% to 0%for 5 years
- NIC threshold to be increased by £3,000 to £12,570 from July 2022
- Tax Plan to consider changes to R&D Tax credits and investment allowance regime
- Employment Allowance to be raised to £5,000 from April 2022
- Before end of parliament in 2024 basic rate of income tax to be cut from 20% to 19%
- Growth forecast down to 3.8% in 2022 and 1.8% in 2023
- Inflation expected to average 7.4% this year and 4.0% next year
- Unemployment estimated at 4.1% over next 5 years
- Borrowing forecast at 3.9% of GDP next year
