Yesterday (23rd March, 2022) the Chancellor, Rishi Sunak, pledged to help households fight the cost of living in the UK. His speech was delivered against a testing outlook, with the Office of Budgetary Responsibility finding prices had risen by 6.2 per cent in the twelve months to February 2022, which was the highest rate of inflation for 30 years.
In response, Mr Sunak deducted 5p off fuel duty until March next year and moved the starting point for paying National Insurance to £12,750, an increase of £3,000 and worth over £330 a year for employees.
Looking longer term, he pledged to cut income tax by 1p to 19p by 2024 and announced the scrapping of value added tax (VAT) on energy-saving items such as heat pumps, insulation and solar panels.
The opposition were quick to point out that Mr Sunak’s policies means the UK will face the highest tax burden since the 1940s by 2026-27.
Below is your link to Wren Sterling’s Spring Statement Report, analysing the contents of the Chancellor’s speech yesterday afternoon, including updated personal and business tax tables for the 2022/23 financial year. The Tax Tables are also available as a standalone document.
Need some advice?
If you’re concerned about the impact of the Chancellor’s statement on your financial planning arrangements, please don’t hesitate to get in touch.