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Spring Statement 2022: Key headlines

Spring Statement 2022: Key headlines

Tim Woodgates

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Against a backdrop of rising prices and inflation predicted to average 7.4% this year, the Chancellor’s Spring Statement announced a number of measures aimed at helping households and businesses.

Key headlines

Fuel and living costs
  • Fuel duty cut by 5p per litre from 6pm for 12 months
  • The Household Support Fund for local councils to help the most vulnerable will be doubled to £1bn from April
  • Income Tax to be cut from 20% to 19% from 2024
  • Alignment of the annual National Insurance Primary Threshold and Lower Profits Limit with the income tax personal allowance, making the first £12,750 of earnings tax free
  • VAT (currently 5%) will be scrapped altogether on home energy-saving measures such as insulation, solar panels and heat pumps for the next five years
Support for businesses
  • Temporary 50% discount in business rates for retail, hospitality, and leisure businesses (up to £110,000)
  • £1m Annual Investment Allowance extended to 31 March 2023
  • The Employment Allowance, which allows eligible businesses to reduce their employer National Insurance contributions (NICs), to increase to £5,000 from April 2022
  • Reform of R&D tax credits – from April 2023 businesses will be able to claim relief on storage of vial data and pure maths research