The Chancellor, Rishi Sunak, has delivered the Treasury’s Spring Statement to the House of Commons.
The unfolding cost-of-living crisis has been front and centre in the run up to the Chancellor’s statement and announcements made by the Chancellor include:
- VAT will be cut to 0% on energy saving materials (solar panels, heat pumps, insulation) for five years from April 2022 to support energy efficiency improvements to homes
- The National Insurance threshold at which people start paying contributions will be increased by £3,000 from July 2022, equalising it with the Income Tax personal allowance. The Chancellor aims to reduce the basic rate of Income Tax from 20% to 19% by the end of the Parliament in 2024 and
- Offering some support to low-income households by adding £500 million to the Household Support Fund administered by local authorities.