The Chancellor Of The exchequer, Rishi Sunak, has today (Wednesday 23rd March) admitted that inflation would peak at 8.7% in the final quarter of 2022. However, he announced a number of measurers to ease the burden of rising process.
- Fuel duty to be cut by 5p per litre from 6.00 p.m. tonight (23rd March 2022) 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
- 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
- The Employment Allowance, which gives relief to smaller businesses’ National Insurance payments, will increase from £4,000 to £5,000 from April, 2022
The Chancellor also said:
- 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
- Mr Sunak pledged to cut basic rate of income tax from 20p to 19p in the pound before the end of this Parliament.
- 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