Spring Statement Forecasts From Fuel Duty Cuts To Electricity Bill Increases Help

The BRITs hope that action will be taken in today’s spring announcement to combat the rising cost of living.

We explain the latest mini-budget projections and how they can affect you, from duty cuts on fuel to help with your energy bills.

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Chancellor Rishi Sunak will present his spring statement today.
Raising The National Insurance Threshold Is One Possible Measure That Could Be Announced

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Raising the national insurance threshold is one possible measure that could be announced

Today’s announcement comes just over a week before electricity bills rise for millions of households.

The energy price cap will be raised from 1 April, adding nearly £700 to the cost of gas and electricity.

Britons are also facing higher council taxes and rising grocery prices in supermarkets.

Here’s what the chancellor might announce today in a spring statement.

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Reduced fuel duty

It has been reported that the chancellor may cut the duty on fuel by as much as 5d per liter as gasoline prices soar to record highs.

Fuel prices have skyrocketed due to the Russian invasion of Ukraine.

The average cost to fill up a family car has reached £90, with petrol prices at 165.9p per liter for petrol and 177.3p for diesel.

Drivers currently pay a fuel tax of £57.95 a year, a rate that has been frozen in recent years.

The duty on fuel and VAT is 52% of the price of gasoline, so reducing it will reduce the cost at gas stations.

Motorists could save £2 on an average car tank fill-up if a temporary 5p cut was introduced.

A 5P Fuel Tax Cut Could Save Drivers £2 On The Cost Of Filling Up An Average Car.

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A 5p fuel tax cut could save drivers £2 on the cost of filling up an average car.

Delayed national insurance increase

Last summer, Prime Minister Boris Johnson announced a 1.25 percentage point increase in national insurance, due to take effect in April.

This will add hundreds of pounds to British workers’ tax bills.

It was reported that the planned increase could be delayed due to rising cost of living.

However, the ministers denied this and said they would seek a raise.

The chancellor insisted that his “mission” was to cut taxes for everyone as soon as possible, but did not indicate that he was abandoning his plans.

If all goes according to plan, a person with an annual salary of £20,000 will pay an additional £130.45.

An employee earning £30,000 a year will pay £255.45 more, while those earning £40,000 will have £380.45 more pay.

Raise the national insurance threshold

The Chancellor is also reportedly considering raising the threshold at which people start paying National Insurance.

Workers who work currently pay National Insurance when they earn more than £184 a week or £9,568 a year.

Self-employed persons pay tax when they make a profit of £6,515 per annum.

Raising these thresholds could give hundreds of thousands of low-income workers tax breaks.

But in an interview with the BBC on Monday, Mr Sunak declined to answer the question of whether the threshold would be raised.

Additional help with energy bills

The government has already announced two schemes in response to rising electricity bills.

In February, ministers unveiled a plan to give all households a £200 rebate on their electricity bills.

However, this is not a grant and will have to be paid in installments.

It will also refund a £150 council tax in April to help households cover electricity bills.

But that was before the Russian invasion of Ukraine, which added fuel to rising wholesale energy prices.

Some experts predict that the ceiling on energy prices could reach £3,000 when they rise again in October.

Families, charities and energy experts are hoping tomorrow’s statement will reveal more help.

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It’s not entirely clear what the extra help might look like.

But The Sun previously reported that doubling the £200 electricity bill discount to £400 could be one option.

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