Spring Statement offers little new for struggling businesses
The chancellor has failed to offer any new help to businesses struggling under the cost of living crisis.
Speaking in his Spring Statement this afternoon, Rishi Sunak said income tax would be reduced from 20p in the pound to 19p by the end of this parliament in 2024.
He also said fuel duty would be reduced by 5p a litre for the next 12 months from 6pm tonight.
The chancellor has failed to offer any new help to businesses struggling under the cost of living crisis.
Speaking in his Spring Statement this afternoon, Rishi Sunak said income tax would be reduced from 20p in the pound to 19p by the end of this parliament in 2024.
He also said fuel duty would be reduced by 5p a litre for the next 12 months from 6pm tonight.
The chancellor added that households that want to improve energy efficiency will not pay any VAT on solar panels, heat pumps or turbines. He said the cut was only possible due to Britain leaving the EU, which would have held the VAT rate at 5%.
The chancellor spoke to a theme of security and strengthening the economy in the face of Russian aggression, but was heckled with cries of “Is that it?” from the chamber.
The chancellor repeated the pledge to cut business rates by 50% for retail, hospitality and leisure businesses, a £1.3bn deal. While this will come into force in April, it was announced in October and is not a new commitment.
In addition he promised to equalise the level at which national insurance contributions are made with income tax. The change, which will cost £6bn, will raise the level from £9,600 to £12,570.
Shadow chancellor Rachel Reeves said that the proposals did nothing to help those struggling most. “A landlord with a large number of properties won’t be paying a penny more in taxes, but their tenants will. The chancellor has made the wrong choices again. The chancellor says we can’t help everyone, and that’s absolutely true. So who has the chancellor been helping out? Those who have been swindling the taxpayer.”
She repeated calls for a windfall tax on energy companies, and accused the chancellor of living in a fantasy world. “It is Alice in Sunakland,” she said. “When did higher taxes become lower taxes? When did down mean up?”
SNP leader in Westminster Ian Blackford said that the government was sitting on £20bn that it could use to fix the “Tory poverty pandemic”.
To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews
Image © Alastair Grant/AP/Shutterstock
