Spring Statement 2022 Headlines

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Daniel McAllister | 23rd March 2022

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