Rishi Sunak, Chancellor of the Exchequer, delivered his Spring Statement in Parliament on Wednesday in what has been described as a “mini-budget”. The Chancellor brought welcome tax relief across several areas of the economy, though some have suggested the measures do not go far enough amidst the current economic climate.
Announcements from Sunak included:
- The basic rate of income tax will be cut from 20% to 19% by 2024. This is the first cut in 16 years.
- The 5% rate of VAT is to be scrapped on energy-saving home improvements such as solar panels and heat pumps.
- Fuel duty will be cut by 5p a litre until March 2023
- Business rates for the retail, hospitality and leisure sectors will be cut by 50% up to £110,000.
- From April, the Household Support Fund for local councils will be doubled to £1 billion.
- The National Insurance (NI) threshold will be raised by £3,000 to £12,750.
I. Stephanie Boyce, president of the Law Society of England and Wales, commented:
“We look forward to working with the UK government on the proposals and reforms to unlock growth.
Legal services make an enormous economic contribution to the UK and a healthy legal system is vital for individuals and businesses.
We are keen to engage with the government over the plan to help design a tax system that works for legal services and allows us to get on with supporting people and businesses across the economy.
We also welcome plans to explore whether the current tax system – including the operation of the Apprenticeship Levy – is doing enough to incentivise businesses to invest in the right kinds of training, an issue we have previously raised.”