Spring Statement: Key points at a glance

2 years ago 33

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The chancellor's update on the economy comes amid surging prices for household bills and essentials

Chancellor Rishi Sunak is unveiling the contents of his Spring Statement in the House of Commons

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

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Annual growth set to be 3.8% this year, followed by 1.8% in 2023 and 2.1% the year after, according to the Office for Budget Responsibility
Inflation in February was 6.2% annually and is likely to rise to average 7.4% for the rest of this year
The unemployment rate, which is currently at 3.9%, is now predicted to be lower, in every year of the forecast.
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.

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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

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.