The government’s spring statement was hailed as a “welcome boost” for hard-working local families.
Chancellor of the Exchequer MP Rishi Sunak has announced a tax cut for nearly 30million UK workers through increases to national insurance thresholds – saving the typical employee over £330 £ in the year from July.
He also unveiled a tax plan to further help families cope with rising costs, cut petrol and diesel taxes by 5p per liter for next year and announced a cut in the income tax from 2024.
A £500million prize pool for local authorities has also been announced, as a top-up to the Household Support Fund – which has already supported hundreds of local families. This is in addition to all AD council taxpayers receiving a £150 discount.
Cllr Rob Waltham, leader of North Lincolnshire Council, said: “The Chancellor’s measures will make a real difference for families.
“Those most in need will be helped and more money will be put into the pockets of hard-working families in North Lincolnshire.”
The range of measures designed to help those facing global inflation include:
- Fuel tax reduced by 5 pence per liter until March 2023
- Homeowners who install energy efficient materials such as solar panels, heat pumps or insulation will not pay VAT
- Local authorities will receive an additional £500million for the Household Support Fund from April
- The income threshold at which people start paying National Insurance will rise to £12,570 in July
- A commitment to cut the basic rate of income tax from 20p to 19p in the pound before the end of this Parliament
- Employment Benefit, which relieves small businesses of National Insurance payments, will be increased from £4,000 to £5,000 from April.
Speaking at the Spring Statement, Chancellor Rishi Sunak said: ‘This statement puts billions back in the pockets of people across the UK and delivers the biggest net cut in personal tax for over a quarter of a century.
“Like our actions against Russia, I was able to do this because of our strong economy and the difficult but responsible decisions I had to make to rebuild our finances after the pandemic.
“Reducing taxes means people get immediate relief from the rising cost of living, businesses have better conditions to invest and grow tomorrow, and people keep more of what they they win for years to come.”