Tax cuts to support families with cost of living

As part of the Spring Statement, Chancellor Rishi Sunak has announced tax cut for nearly 30 million UK workers through rise in National Insurance thresholds.

From July, National Insurance starting thresholds will rise to £12,570 meaning that hard-working people across the UK will keep more of what they earn before they start paying personal taxes.

Worth over £6 billion, the cut will benefit almost 30 million working people with a typical employee saving over £330 in the year from July.

The statement also saw Sunak announce that fuel duty for petrol and diesel will be cut by 5p per litre to help drivers across the UK with rising costs – a tax cut worth £2.4 billion. This is the biggest cut ever on all fuel duty rates and means a one-car family will now save on average £100.

The basic rate of income tax will also be cut by 1p in the pound in 2024, when the OBR expect inflation to be back under control, debt falling sustainably and the economy growing. The cut is worth £5 billion for workers, savers and pensioners and will be the first cut to the basic rate in 16 years.

Sunak said: “This statement puts billions back into the pockets of people across the UK and delivers the biggest net cut to personal taxes in over a quarter of a century. Like our actions against Russia, I have been able to do this because of our strong economy and the difficult but responsible decisions I have had to make to rebuild our finances following the pandemic. Cutting taxes means people have immediate help with the rising cost of living, businesses have better conditions to invest and grow tomorrow, and people keep more of what they earn for years to come.”