How Rishi Sunak's Spring Statement will affect you.

Adapted from BBC Article 23 March 2022

Chancellor Rishi Sunak has unveiled the contents of his Spring Statement in the House of Commons Key points at a glance He has come under increasing pressure to act, with prices rising 6.2% in the 12 months to February - the fastest for 30 years. The chancellor said the forecast for UK's economic growth was now 3.8% for this year and 1.8% in 2023.

Here is a summary of the main points so far.

State of the economy and public finances

• The UK economy is forecast to grow by 3.8% this year, according to the Office for Budget Responsibility, a sharp cut from its previous prediction of 6.0%
• The economy is then forecast to grow by 1.8% in 2023 and 2.1% in 2024
• The annual inflation rate was 6.2% in February, and is likely to average 7.4% for the rest of this year, but with peak of 8.7% in the final quarter of 2022
• The unemployment rate, which is currently at 3.9%, is now predicted to be lower in every year of the OBR's forecast.
• The number of people employed between now and 2027 is expected to be 400,000 lower than before the pandemic. This is because of early retirements, long-term sickness and fewer workers arriving in the UK
• Borrowing as a percentage of GDP is expected to fall from 83.5% of GDP in 2022/23 to 79.8% in 2026/27
• The government is forecast to spend £83bn on debt interest in the next financial year, the highest on record

Fuel, energy and living costs

• Fuel duty will be cut by 5p per litre until March 2023
• Homeowners installing energy efficiency materials such as solar panels, heat pumps, or insulation installed will not pay VAT
• Local authorities will get another £500m for the Household Support Fund from April, creating a £1bn fund to help vulnerable households with rising living costs

Taxation

• The income threshold for at which point people start paying National Insurance will rise to £12,570 in July, which Mr Sunak said was tax cut for employees worth over £330 a year
• Mr Sunak pledged 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, will increase from £4,000 to £5,000 from April

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