The threshold for paying National Insurance will increase by £3,000 from July. “People will be able to earn £12,570 a year without paying a single penny of income tax or national insurance.”
The income tax basic rate will be cut from 20 per cent to 19 per cent by 2024.
Business tax cuts coming this Autumn
Retail, hospitality and leisure industry to get 50 per cent cut on business rates up to £110k.
Small businesses’ employment allowance increases to £5,000, worth up to £1,000 per business.
Tax plans will help families with the cost of living, create conditions for higher growth, and share proceeds for growth fairly, Sunak says
Levy to pay for NHS and social care spending
Energy costs
£9billion plan to help 28million households to pay around half of the April energy price cap
Motorists, fuel duty cut 5p per litre – in place until March next year from 6 pm tonight
For the next five years, no more than 5 per cent VAT on energy efficiency products such as insulation and solar panels – However, Northern Ireland Protocol means this will not apply to the province.
Economy
OBR: UK GDP growth of 3.8 per cent this year – down from the forecast of 6 per cent – then will be 1.8 per cent, 2.1 per cent and 1.8 per cent in the following three years
Lower OBR: 7.4 per cent inflation average
Public finances will worsen significantly as the cost of financing debt grows.
Impact of Ukraine war: Sanctions of unprecedented scale and scope – these sanctions are working but ‘are not cost-free for us at home. It presents a risk to our recovery, growing faster than expected before the invasion. It is too early to know the full impact of the war on the UK economy.
