Spring Statement March 2022: Champion’s reaction & key highlights

The Chancellor's Spring Statement opened by highlighting the war in the Ukraine and the financial impact of the conflict on the UK economy, most notably soaring petrol and energy prices and the cost-of-living squeeze.

In a speech that lasted less than 30 minutes, the key takeaways were equally as brief and are outlined below:

• As expected, there will be an increase (1.25%) to both Employers and Employees National Insurance contributions from 6^th April 2022. Click HERE for more information.
• From 6^th July 2022, National Insurance thresholds will rise by £3,000, which will align with the current personal tax allowances. This means someone must earn £12,570 per annum before paying income tax and National Insurance
• The basic rate of income tax will fall from 20% to 19% by the end of the current Parliament in 2024
• For only the second time in 20 years' fuel duty rates will be cut by 5p per litre until March 2023, which came into effect at 6pm on the 23^rd March 2022
• VAT cut to 0% on energy saving materials such as insulation, solar panels and heat pumps

General Announcements:

• Retail hospitality and leisure sectors will receive a 50% discount on business rates up to a maximum of £110,000
• There are planned reforms to the R&D tax credits scheme, with further details to be announced in due course
• A consultation will take place on how to improve capital allowance rules to drive growth and support future business investment.

Full details of the statement and its implications can be found by clicking HERE.