SPRING STATEMENT BRIEF: Key points, what does this mean for you and will you save on national insurance?
Today after 12.30 Chancellor Rishi Sunak got up to make a spring statement under high pressure.
He said his goal was to overcome the cost of living crisis, and the biggest news was raising the national insurance threshold to £ 12,570, which will begin in July.
The planned increase in the national insurance rate by 1.25 percentage points will continue in April. The new rates will be 13.25 per cent from £ 112,570 to £ 50,000 and 3.25 per cent above £ 50,000.
It was also announced to reduce the fuel duty by 5 pence a year and a commitment to reduce the base income tax rate from 20 to 19 pence by the end of parliament.
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How much will you save or lose from changes in the National Security? 1.25% will be added to the NI rate from April, but from July the lower threshold will rise to £ 12,570. Our table shows how people of different incomes will be affected per month if both changes are made.
What this means for you
Key measures at a glance
- The impact of the war on Ukraine
- “Sanctions of unprecedented scale and scope” – these sanctions work, but “are not free for us at home”
- This poses a risk to our recovery, which grew 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 – up from 6 per cent forecast – then up 1.8 per cent, 2.1 per cent and 1.8 per cent over the next three years
- The lower growth forecast has not affected our strong jobs
- OBR: Average inflation is 7.4 percent
- Public finances will deteriorate significantly as the cost of debt financing increases
As households across the country face a growing cost-of-living crisis, Chancellor Rishi Sunak reveals government response
- £ 9bn plans to help 28m households pay about half of April energy price cap
- Motorists reduce fuel by 5 pensioners per liter – valid until March next year from 6 pm
- Over the next five years, there will be no more than 5 per cent VAT on energy-efficient products such as insulation and solar panels – however, the Northern Ireland Protocol means this will not apply to the province.
- Raising the threshold for national insurance: “From July this year, people will be able to earn 12,570 pounds a year without paying a penny of income tax or national insurance,” – says Sunak.
- The base income tax rate has been reduced from 20 to 19 percent
- This fall there will be a reduction in business tax
- The retail, hospitality and leisure industry will receive a 50 per cent reduction in the business rate to £ 110,000.
- Small business employment allowance increases to £ 5,000, up to £ 1,000 per business
- Sunak says tax plans will help families raise the cost of living, create the conditions for higher growth and share income fairly for growth
- Increase the NICS threshold by £ 3,000 by equalizing the income tax threshold
- Charging to pay NHS costs and social services
SPRING STATEMENT BRIEF: What it means for you and for the economy
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