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Spring Statement Summary


General Economic Status

  • UK economy will grow by 3.8% this year followed by 1.8% in 2023, and then 2.1%, 1.8% and 1.7% in the following three years.

  • Inflation will average 7.4% this year before dropping to 4% in 2023 and 1.5% in 2024

  • The unemployment rate will be 4.5% this year, dropping to 4.0% next year and remaining stable at 4.1% for the next three years

  • Government debt will be 96.3% of GDP this year before slowly falling to 89.4% in 2026/27

Here's a summary of some key points: Fuel Duty

  • From 6pm Wednesday 23rd March, the Government will reduce main rates of petrol and diesel by 5p per litre, and other rates proportionately for 12 months.

VAT

  • A VAT rate of 0% will be applied to energy-saving materials materials, such as solar panels or heat pumps.

National Insurance

  • The annual National Insurance Primary Threshold and Lower Profits Limit, for employees and the self-employed respectively, will increase from £9,880 to £12,570 from July 2022.

  • From April, self-employed individuals with profits between the Small Profits Threshold and Lower Profits Limit will not pay class 2 NICs

Employment Allowance

  • From April, Employment Allowance will; be increased from £4,000 to £5,000 As a result, businesses will be able to employ four full-time employees on the NLW without paying any employer NICs

Personal Income Tax

  • The basic rate for personal tax rate will decrease from 20% to 19% from April 2024

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