Spring 2022 Statement: Live Updates as Rishi Sunak Cuts Fuel Duty and VAT on Energy Efficient Devices

Chancellor of the Exchequer Rishi Sunak leaves 11 Downing Street for the House of Commons.

Chancellor Rishi Sunak intends to show support for British citizens with a spring statement.

The spring announcement will begin after PMQ at 12pm and Mr Sunak has pledged to “support” families to help them through the crisis, with him widely expected to cut fuel surcharges for motorists while Mr Sunak is also considering the possibility of increasing the threshold. start paying National Insurance (NI).

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Spring statement: Rishi Sunak called for action as households set to ‘tax…

You can follow updates from the Spring Statement on our live blog.

Last update: Wednesday, March 23, 2022 at 1:37 pm

You can also watch the Spring Statement live on our website.

Here are the main points of Chancellor Rishi Sunak’s spring statement:

– Mr Sunak said that by the end of the current parliament in 2024, the government will cut the base income tax rate from 20p per pound to 19p, which he said was “fully accounted for and fully paid for in the plans announced today.”

– The chancellor said he would “support” households and announced that the fuel duty would be reduced by 5d per liter over the year until March 2023.

— Mr. Sunak said that “thanks to Brexit” he was able to eliminate VAT on materials such as solar panels, heat pumps or insulation to help reduce energy costs, as well as wind and water turbines. He told the Commons: “We will abolish all the bureaucratic red tape imposed on us by the EU.”

– He also said he was doubling the Household Support Fund to £1bn “to do more to help our most vulnerable households with rising costs” with “targeted support”.

– The Chancellor said he would publish a ‘tax plan’ as he announced that the National Insurance Contributions (Nics) threshold would be raised by £3,000 ‘to fully equalize the Nics and Income Tax thresholds not gradually over many years but in one go this year”. .

Rachel Reeves criticizes Rishi Sunak saying “inflation is back” and calls the chancellor “Ted Heath with an Instagram account”.

Rachel Reeves adds: “It’s a shame he doesn’t, because when Martin Lewis predicts that 10 million people could face fuel poverty, the chancellor should sit down and listen.”

She added: “We know that pensions and Social Security have not kept pace with inflation. Retirees and Social Security recipients receive a real reduction in their income.

“So, what analysis did the chancellor make regarding the impact of a less-than-inflation benefit rating increase? How many more children and pensioners will fall into poverty because of … this government?

Rachel Reeves said the government’s plan did nothing for people on the brink of fuel poverty or for retirees who are facing a “real cut” in their income.

Rachel Reeves told the House of Commons: “Today was the day the chancellor could have put in a surcharge on oil and gas companies to really help families, but he didn’t.

“Today was the day when the chancellor could develop a proper plan to support business and create good jobs. But he didn’t.

“Today was the day he could have properly waived his National Insurance raise, but he didn’t.

“We said it was the wrong tax at the wrong time, the wrong choice. Today, the chancellor finally admitted that he was mistaken.

“Inflation is at its highest level in 30 years and continues to rise. Energy prices are at an all-time high. People are very worried.

“By all his words, it is clear that the chancellor does not understand the scale of the challenge. He talks about keeping working families safe, but his choices make the cost-of-living crisis worse, not better.”

On the fuel tax cut, Rob Morgan, investment analyst at Charles Stanley, said: “The 5p fuel tax cut is about £50 a year for average car use, which is clearly beneficial for motorists and even more so for the transport industry, but is not a great move given the huge rise in gas station prices over the past couple of months.”

Boris Johnson congratulates Chancellor of the Exchequer Rishi Sunak after he delivered his Spring Statement in the House of Commons.

Labor Chancellor Rachel Reeves says Rishi Sunak could have imposed a surcharge on energy companies or properly cut his National Insurance, but chose not to.

She says Sunak’s choice exacerbates the cost-of-living crisis.

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