A Spring Statement isn’t usually a major fiscal event, instead, it is an opportunity to consult on future changes to the fiscal system, with major tax and spend announcements generally reserved for the main Budget later in the year. However, these are unusual times and things have changed dramatically since the Budget in October 2021, with inflation set to reach 8% by Q2 and the impact of the war in Ukraine likely to push energy and food prices even higher.

With that backdrop, the Chancellor badged the Spring Statement as reforming and reducing taxes for households to help with the cost-of-living crisis and the headlines are dominated by the increase in the national insurance threshold. This eases the pain for some households, but it is clear the Chancellor is keen to fix public finances and can’t protect the country from all the pressures arising from the cost-of-living crisis.

Read the full statement here.

If you have any questions about the report, or on the Chancellor’s speech, please don’t hesitate to contact your adviser.

We hope you enjoy our Budget round-up.