Spring Statement 2022 in summary: "People. Capital. Ideas."
Spring Statement 2022:
Today chancellor of the exchequer Rishi Sunak MP delivered his revised budget to parliament with the intention of providing “security for working families as the government helps with the cost of living”. With Great Britain providing £400m in economic and humanitarian aid to the people of Ukraine and being set to pay £83bn of debt interest over the next financial year, the chancellor has put into action several key initiatives. Here are some highlights regarding the Spring Statement 2022:
For the second time in 20 years, fuel duty will be cut by 5p per litre. The cut will be in place until March 2023. This measure will supposedly save British drivers a combined £5bn
The basic rate of income tax will go from 20 per cent to 19 per cent by the end of Parliament in 2024
0 per cent VAT relief for 5 years for sustainable materials for housing. Solar panels will see tax savings of £1000 and energy bill savings of £300
From July, workers will be able to earn £12,570 a year without paying any income tax or National Insurance, providing savings of £330 per year
The government will cut the VAT rate to 0 per cent for households installing solar panels, heat pumps, or insulation.
In respect of businesses, Rishi Sunak MP also deliberated the effectiveness of the current system in respect of training workers in high-skilled roles. He said: “Just 18 per cent of 25 - 64 year olds’ hold vocational qualifications, a third lower than the OECD average. “And UK employers spend just half the European average on training their employees. So, we will consider whether the current tax system, including the operation of the Apprenticeship Levy, is doing enough to incentivise businesses to invest in the right kinds of training.” The chancellor went on to outline current plans to help SMEs: “Our business rates discount will take effect in April for retail, hospitality, and leisure businesses. They’ll get a 50 per cent discount on their business rates bill, up to £110k. A typical pub will save £5k. That’s a tax cut for hundreds of thousands of small businesses worth £1.7bn.” “Our Help to Grow: Management scheme offers businesses mini-MBAs, 90 per cent funded by the government, a benefit worth several thousand pounds. And Help to Grow: Digital gives businesses a 50 per cent discount on buying new software worth up to £5k.” Looking to promote your product/service to SME businesses in your region?