🔺 Spring statement: Living standards set to plunge despite Sunak tax cuts thetimes.co.uk/article/spring…
Rishi Sunak has attempted to reassert his credentials as a tax-cutting chancellor by raising the national insurance threshold, lowering fuel duty by 5p a litre and pledging to cut income tax by 1p in 2024 to help with the cost of living crisis thetimes.co.uk/article/spring…
He announced plans to increase the threshold at which people start to pay national insurance from £9,568 to £12,750 in July.
The measure will cost £6bn and result in an overall tax cut for 7 in 10 workers, despite a combined 2.5% rise in NI for employers and employees next month
The measure will cost £6bn and result in an overall tax cut for 7 in 10 workers, despite a combined 2.5% rise in NI for employers and employees next month
Sunak pledged to cut income tax from 20p to 19p in 2024, the next election year. Sources suggested that he could cut income tax by more if finances improve, and Sunak called his package “the biggest net cut to personal taxes in a quarter of a century” thetimes.co.uk/article/spring…
However, the Office for Budget Responsibility, the fiscal watchdog, warned that living standards would still fall by a 2.2% next year, the largest fall in a single year since records began in 1956
Sunak’s cut to fuel duty and changes to the national insurance threshold would, the OBR said, only “offset a third of the overall fall in living standards that would otherwise have occurred in the coming 12 months”
Read the summary of the key points here 👇
⛽ Fuel duty
💵 National Insurance
🏠 Household support fund
⚡ Energy efficiency measures
💰 New tax plan
thetimes.co.uk/article/spring…
⛽ Fuel duty
💵 National Insurance
🏠 Household support fund
⚡ Energy efficiency measures
💰 New tax plan
thetimes.co.uk/article/spring…
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