UK Spring statement 2022: Rishi Sunak presented the statement today

UK Spring statement 2022: Rishi Sunak presented the statement today

Synopsis: Rishi Sunak will disclose the Spring statement 2022 amid rising price pressure from the increased food cost, fuel, energy. The Russia Ukraine war led to a spike in fuel and energy in the United Kingdom and Europe.

Inflation in the UK

Energy analysts have already warned that the United Kingdom household price bills could touch up to £3,000 a year if gas price prevails. Petrol average prices have hit highs repeatedly, while the latest petrol price is 155p and 161p diesel price.

As the energy, fuel, and food costs surged, the price has raised by 6.2 % in the last 12 months to February, which is the fastest-growing price for thirty years.

Spring Statement 2022

On 23. March 2022, Wednesday, at 12:30 GMT. Rishi Sunak has announced the measure which could help people facing the hike in prices and reduction in fuel tax.

Rishi Sunak has announced five measures which are as follows:-

Rishi Sunak stated that: Fuel duty will be cut by five pounds per liter. This is the most significant cut to the fuel duty rates ever. It will be emplaced up till March 2023. Together with the fuel, Tax will be cut this year for hardworking families and businesses worth over five billion pounds. It will take effect from 6 pm tonight.

We know the energy efficiency will make a big difference to bills as energy cost price. Installed energy-saving materials.

At the moment, only some items qualify for 45% VAT relief, and there is a complex role about few are eligible. The relief used to be more generous, but from 2019, the European court of justice required us to restrict its eligibility.

”I can announce for five years materials like a solar panel, heat pumps installed will no longer pay 5 % VAT they will pay zero. We will also reverse the decision to take wind and water turbines out of scope and zero rate them as well as we will abolish all the red tape imposed on us by the year”.

A family having a solar panel set installed will see will saving tax savings worth a thousand pond and savings on the energy bill will consist of over 300 pounds per year. This policy highlights the deficiency in the northern island protocol because we would immediately apply it in the northern island.

But we will be raising it with the Commission as a matter of urgency.

And I want to reassure Members from Northern Ireland…

…that the Executive will receive a Barnett share of the value of the relief until it can be introduced UK-wide.

And the Prime Minister will bring forward further measures to reinforce our long-term energy security, in the coming weeks.

And finally, I want to do more to help our most vulnerable households with rising costs. They need targeted support.

So I am doubling the Household Support Fund to £1bn with £500m of new funding

Local Authorities are best placed to help those in need in their local areas.

and they will receive this funding from April.

Today, we take the next step.

Our current plan is to increase the NICs threshold this year by £300.

I’m not going to do that.

I’m going to increase it by the full £3,000.

Delivering our promise to fully equalise the NICs and income tax thresholds.

And not incrementally over many years, but in one go, this year.

From this July, people will be able to earn £12,570 a year without paying a single penny of income tax or National Insurance.

That’s a £6 billion personal tax cut for 30 million people across the United Kingdom.

A tax cut for employees worth over £330 a year.

The largest increase in a basic rate threshold – ever.

And the largest single personal tax cut in a decade.

Rishi Sunak faced Price Pressure

Rishi Sunak has faced price pressure due to the rising prices in the country. Millions of households were facing high petrol, gas, and household energy bills. Due to the Russia Ukraine crisis, the UK and other European countries have to face inflation due to a lack of energy and fuel.

Along with fuel and energy, the price of food items has also increased within a few weeks. On Monday, George Eustice, Environment Secretary, said surging gas and oil would make an inevitable rise in Wheat, food products like chicken, and other food items. The measures released by Rishi Sunak will bring some relaxation to the citizens.