Court of Protection
Budget Summary March 2022
A budget update from Mullis & Peake LLP Solicitors:
The Chancellor, Rishi Sunak, delivered his Spring Statement today. This was originally intended to be a review in advance of the full Budget in the autumn. However the costs of living crisis has led to the announcement of a number of changes:
- Fuel Duty will be cut by 5p a litre from 6pm this evening
- The threshold for National Insurance (NI) will be raised from July. The current limit of £9,600 before NI is payable will increase to £12,570
- The basic rate of Income Tax will be reduced from 20% to 19% in 2024
- VAT on energy saving products, such as heat pumps and solar and panels has been cut from 5% to zero for five years
- The Employment Allowance, which assists small businesses with NI contributions, will increase from £4,000 to £5,000 on 6th April 2022
- There will be an increase in the household support fund. When it was set up last year the fund had £500m to help families with the cost of living. This will double to £1bm from April 2022.
Lower growth forecasts are predicted as a result of the impact of the war in Ukraine and inflation is expected to be an average of 7.4% this year.