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Spring Statement 23 March 2022: Rishi Sunak raises NI threshold and cuts fuel duty

We’ve just finished hearing Chancellor Rishi Sunak’s mini-budget and the response from Labour. Here’s a recap of the headline announcements in the Spring Statement.

Rishi Sunak’s spring statement at a glance: 

  • Fuel duty cut by 5p per litre for a year from 6pm tonight
  • VAT on household green energy equipment like solar panels and heat pumps is scrapped
  • Household Support Fund, a grant for councils to give to most vulnerable households, doubled to £1billion 
  • National Insurance threshold – the salary at which it starts to be paid – increased by £3,000 to £12,570 
  • Sunak says it is £6billion tax cut for 30 million people 
  • Pledge to bring in ‘fully costed’ cut to income tax from 20p to 19p before the next election in 2024. 
  • Office for Budget Responsibility (OBR) has lowered growth forecast to 3.8 per cent this year, falling to 1.8 per cent in 2023 and then 2.1 per cent, 1.8 per cent and 1.7 per cent in 2024-6
  • Inflation expected to average 7.4 per cent this year. 
  • Sunak: ‘People should know we will stand by them as we have in the past two years’
  • Debt interest payments hit £83billion this year due to inflation