Julian welcomes Spring Statement boost for local households
March 23, 2022
Given rising living costs driven by economic dislocation from the pandemic, exacerbated by the impact of the Ukraine war, I am glad the Chancellor today brought forward measures to address this, and will push him to do more wherever necessary.
I welcome the 5p fuel duty cut, which should save car drivers £100 and van drivers £200 across the next year, and will be particularly valuable for residents of outlying areas and small businesses across York.
Our covid-battered small businesses, the lifeblood of our city and source of much local employment, will also receive a £1000 tax cut through increasing the National Insurance Employment Allowance to £5000, and I am glad lobbying from myself and others on the need to assist them has been listened to.
Most significantly, I was pleased to see the Chancellor help family budgets by significantly raising the threshold at which people pay National Insurance from £9500 to £12,570. This is worth over £330 a year to almost 30 million workers, and delivers on the 2019 Conservative manifesto commitment to do this. I am encouraged that this will more than offset the previously announced NI rise to fund the NHS and social care reform for 70% of employees, but want to see how this works out in practice. Rishi Sunak’s announcement he wants to be able to take a penny off income tax in 2024 sets a good direction of travel, but the impact of world events could threaten this.
Having previously lobbied Ministers on ensuring the right support is available for the most vulnerable households through the Universal Credit system, I am glad that NI and fuel measures are being reinforced with targeted assistance for the poorest homes, with the Household Support Fund doubled to £1 billion to help up to 4 million families.
Overall, these steps give me substantial reassurance the government are serious about cushioning York families from rising inflation. However, the developing situation, not least the economic shock of a major European war, means Ministers need to stay ready to go further and faster to protect households financially, and I will be tireless in pressing them on this.
