SPRING STATEMENT IN BRIEF: What it means for you and the economy

Chancellor Rishi Sunak stood up to deliver a high-pressure Spring Statement at 12.30. 

Below we itemise the key announcements as they’re delivered. Please hit refresh for latest. 

• Impact of Ukraine war 
• ‘Sanctions of unprecedented scale and scope’ – these sanctions are working but ‘are not cost free for us at home’ 

• It presents a risk for our recovery, which had been growing faster than expected before the invasion

•  It is too early to know the full impact of the war on the UK economy

• OBR: UK GDP growth of 3.8 per cent this year – down from forecast of 6 per cent – then will be 1.8 per cent, 2.1 per cent and 1.8 per cent in the following three years

• Lower growth outlook has not affected our strong jobs performance

• OBR: 7.4 per cent inflation average
• Public finances will worsen significantly as cost of financing debt grows

Energy costs

• £9billion plan to help 28million households to pay around half of April energy price cap

• Motorists, fuel duty cut 5p per litre – in place until March next year from 6pm tonight

• For next 5 years, no more 5% VAT on insulation, solar panels etc. – will not apply to Northern Ireland 

Taxes 

• Increase in National Insurance threshold: ‘From this July, people will be able to earn £12,570 a year without paying a single penny of income tax or National Insurance,’ says Sunak. 
• Income tax basic rate cut from 20p to 19p 
• Business tax cuts coming this Autumn 
• Retail, hospitality and leisure industry to get 50 per cent cut on business rates up to £110k 
• Small businesses’ employment allowance increase to £5,000, worth up to £1,000 per business  
• Tax plans will help families with cost of living, create conditions for higher growth, and share proceeds for growth fairly, Sunak says
• Increase NICS threshold by £3,000, equalising threshold with income tax
• Levy to pay for NHS and social care spending