Spring Statement 2022: what it means for you and your money

The Chancellor, Rishi Sunak, delivered his Spring Statement earlier this afternoon.

The key points are:

  • The Chancellor confirmed the planned increase to National Insurance (NI) rates would proceed to fund health and social care spending. Recognising the current cost-of-living crisis he lifted the threshold for paying NI by £3,000 from July 2022, providing a tax cut of £330 a year.
  • Cut of 5p per litre in fuel duty starts at 6pm today to combat the escalating fuel crisis.
  • The Employment Allowance for small businesses’ NI payments increases from £4,000 to £5,000 from April 2022 to help small businesses manage the NI increases.
  • Basic rate of tax to fall to 19p by the end of this Parliament in 2024.

The Chancellor confirmed that

  • Inflation forecast to be an average of 7.4% this year
  • UK growth forecast has been downgraded to 3.8%, a sharp fall from previous predictions of 6.0%, by the Office for Budget Responsibility.
  • Unemployment rate falling

If you do want to speak to us about any of the points raised or wider financial issues, please contact us at info@mmwealth.co.uk