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SPRING STATEMENT BRIEF: What it means for you and for the economy

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

Fuel collection reduced by 5 sts

Households are facing the biggest drop in living standards since the 1950s

“Pensioners have nothing”: older people will be forced to dig deeper into pension pots, as inflation outpaces the growth of state pensions by 3.1%

Hospitality industry on the island, as the Chancellor refuses to extend 12.5% ​​VAT

The Chancellor returns half of his raid of 12 billion pounds and says that the base tax rate will be reduced from 20 to 19 pensions in 2024

Reaction and charts as it happened

Reducing Sunak’s VAT on solar panels will not help the cost of living crisis

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

As households across the country face a growing cost-of-living crisis, Chancellor Rishi Sunak reveals government response

Energy consumption

  • £ 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.

Taxes

  • 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

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SPRING STATEMENT BRIEF: What it means for you and for the economy

Source link SPRING STATEMENT BRIEF: What it means for you and for the economy

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