The Government Spring Statement has been hailed as “a welcome boost” for hard-working local families.
Chancellor of the Exchequer, Rishi Sunak MP, announced a tax cut for nearly 30 million UK workers through rises in National Insurance thresholds – saving the typical employee more than £330 in the year from July.
He also unveiled a Tax Plan to give families further help with rising costs, reduced fuel duty on petrol and diesel by 5p per litre for the next year and announced an income tax cut from 2024.
A £500m cash pot for local authorities was also announced, in the form of a top up to the Household Support Fund – which has already supported hundreds of local families. This is on top of all A-D council tax-payers getting a £150 rebate.
Cllr Rob Waltham, leader, North Lincolnshire Council, said: “The Chancellor’s measures will make a very real difference to families.
“Those most in need will be helped, and more money will be put in the pockets of hard working families across North Lincolnshire.”
The range of measures designed to help people with global inflation include:
- Fuel duty cut by 5p a litre until March 2023
- Homeowners installing energy efficiency materials such as solar panels, heat pumps, or insulation will not pay VAT
- Local authorities will get another £500m for the Household Support Fund from April
- The income threshold at which point people start paying National Insurance will rise to £12,570 in July
- A pledge to cut basic rate of income tax from 20p to 19p in the pound before the end of this Parliament
- The Employment Allowance, which gives relief to smaller businesses’ National Insurance payments, to increase from £4,000 to £5,000 from April.
Delivering the Spring Statement, Chancellor Rishi Sunak said: “This statement puts billions back into the pockets of people across the UK and delivers the biggest net cut to personal taxes in over a quarter of a century.
“Like our actions against Russia, I have been able to do this because of our strong economy and the difficult but responsible decisions I have had to make to rebuild our finances following the pandemic.
“Cutting taxes means people have immediate help with the rising cost of living, businesses have better conditions to invest and grow tomorrow, and people keep more of what they earn for years to come.”