RISHI Sunak announced a cut to fuel and income tax, as well as a boost to the housing support fund in his Spring Statement 2022.
The mini budget was announced on March 2022, after calls for the Chancellor to do more to tackle the cost of living crisis.
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What time was Rishi Sunak’s Spring Statement speech?
Sunak updated the House of Commons on the country’s financial situation at around 12.45pm on Wednesday, March 23, 2022.
The address came after the Boris Johnson‘s Prime Minister’s Questions (PMQs) which started at 12pm.
What did Rishi Sunak announce in the Spring Statement?
Sunak was under pressure to deliver policies to soften the cost of living crisis.
Here are the measures he announced…
Fuel duty cut by 5p per litre
Sunak announced a 5p cut to fuel duty, in what he called the “biggest cut to fuel duty rates ever”.
The Chancellor announced that the 5p saving for motorists will come into force on TODAY (Wednesday, March 23, 2022) at 6pm and will be in place until March 2023.
The price of petrol has risen 40p per litre since the 2021 Spring Statement and the price of diesel has risen nearly 50p per litre.
That’s as petrol and diesel prices continue to increase at an alarming rate, exacerbated by Russia’s invasion of Ukraine.
MORE ON RISHI SUNAK
Zero per cent VAT on energy-saving materials
Sunak also announced that thanks to Brexit and the removal of EU red tape, homeowners will now pay 0% VAT on home insulation, solar panels, heat pumps and other energy saving materials.
£1 billion household support fund
Funding for local councils to support vulnerable people will be doubled to £1billion from April 2022, the Chancellor announced.
This means that low income families will receive extra financial support, perhaps in the form of vouchers, in order to navigate the cost of living crisis.
Increased National Insurance threshold
The salary threshold before workers pay National Insurance will be increased to £12,570 from July 2022.
Sunak said: “That’s a £6bn personal tax cut for 30 million people across the United Kingdom.”
But Shadow Chancellor Rachel Reeves criticised the move, saying that the planned National Insurance rise should have been scrapped altogether.
Employment Allowance increase
Employment Allowance will increase to £5,000, the Chancellor announced.
The new policy will come into force in April 2022, and aims to help small businesses.
Income tax cut
Sunak’s final announcement in the Spring Statement 2022 was that the basic rate of income tax will be cut by 1p, from 20p to 19p per pound.
He described the move as a “tax cut for workers, for pensioners, for savers. A £5bn tax cut for over 30 million people”.
How can I watch Rishi Sunak’s speech?
The Chancellor’s Spring Statement speech to the House of Commons was broadcast live through The Sun’s YouTube channel.
If you missed it, you can watch the highlights at the top of this article.
