With inflation rising and households facing the largest ever recorded cost-of-living squeeze, Chancellor Rishi Sunak delivered the Government’s Spring Statement 2022 on Wednesday 23rd March.

Below are some of the key points:

  • Inflation is likely to average 7.4% for the rest of the year, rising from its current level of 6.2%;
  • The economy is forecast to grow by 3.8% this year and then 1.8% in 2023 and 2.1% in 2024;
  • To help the most vulnerable, Local Authorities will receive further government support of £500m for the Household Support Fund from April;
  • Fuel duty was cut by 5p a litre;
  • To counteract some of the impact of the impending 1.25% percentage point increase in National Insurance Contributions (NICs), the income level at which individuals start paying NICs will rise from £9,880 to £12,570 in July;
  • The Employment Allowance, which gives relief against smaller businesses’ employer NICs, will increase from £4,000 to £5,000 from April;

As we near the start of the new tax year, please talk to us about any of the changes and how they may affect your business, we are here to support you on 01384 376964.

Visit: Spring Statement 2022 speech – GOV.UK (www.gov.uk) for the full statement

Folkes Worton LLP Chartered Accountants – Accounting for the Future