UK Spring Budget 2022

The Chancellor Rishi Sunak delivered todays Spring budget under the backdrop of inflation being revealed to have risen to 6.2%. The highest rate of inflation for 30 years. This had been made worse by rising fuel prices and will result in significant increases to the cost of living. There is also recognition of the situation in the Ukraine. The impact the ongoing conflict may have, as well as the relatively slow growth being seen in our own economy. In addition to the need to reduce the level of debt built up during the last two years to fund COVID measures.

Inflation, Growth and Debt Repayments

To make his point, during his statement the Chancellor referenced these cumbersome estimates from the Office for Budget Responsibility on inflation, growth and debt repayments.

  • Inflation forecast to average 7.4% this year
  • UK growth expectation downgraded to 3.8% this year
  • UK to spend £83bn on debt interest in the next year

In line with the relatively low expectations of change ahead of today’s announcement, there were relatively small immediately effective measures to ease the burden of the cost of living were set out. There was however the promise of a 1% cut in income tax rates before the end of the current parliament in 2024 first cut to the basic rate of income tax in 16 years – from 20% to 19% – by the end of Parliament in 2024

Despite the economic picture painted and other indications given in advance as to the limited ability to make sweeping cuts that would have an immediate impact a shout of ‘is that it?!’ could clearly be heard from the Labour benches and there has been disappointment expressed at the fact that the proposed heath and social care level and subsequent NI rate increase were not scrapped as had been hoped for.

What you need to know

Here therefore are the key take aways from today’s Statement:

  • A cut to the basic rate of income tax. From 20% to 19% – by the end of Parliament in 2024
  • Fuel duty will be cut by 5p a litre from 18:00 GMT until March 2023
  • The National Insurance threshold will be raised by £3,000. Meaning people must earn £12,570 per year before paying income tax or NI. It’s a tax cut for 30 million people worth over £330 a year, says Sunak
  • VAT will be scrapped on home energy-saving measures such as insulation, solar panels and heat pumps
  • The Household Support Fund for local councils to help the most vulnerable will be doubled to £1bn from April
  • Retail hospitality and leisure sectors will have a 50% discount in business rates up to £110,000
  • Employment Allowance will increase to £5,000. Claiming it is a tax cut worth up to £1,000 for half a million small businesses.

gillian has an excellent understanding of international tax matters

Which is absolutely vital for me as I am an EU national residing in the UK.

We were very pleased with the advice that everfair tax gave us

Thank you very much for all your kind help and assistance. We are extremely grateful that they followed on with notes of our telecon.

It was a stroke of good luck when we connected with the kind consultants at everfair tax

They proved to be invaluable as we found our way through a maze of forms pertaining to our particular dual citizenship tax issues, and brought up scenarios it hadn’t even occurred to us to consider.

I’d be happy to serve as a reference for any prospective clients.

Thanks to you and your team for all your efforts, which I greatly appreciate.

Everfair Tax offers a very professional service with extremely helpful staff

All my needs were met by their stellar team. I would be happy to recommend them to friends and family.

The team handling my US return were extremely pleasant

They were professional, helpful, polite, and very responsive. They always got back to me by email or set up a video call to explain matters. I would have no hesitation in recommending Everfair Tax to people I know.

The team at Everfair Tax have been a pleasure to work with

The whole process has been very clear and efficient. I have been confident in recommending their services to my colleagues.

All timelines were met, and all questions were answered punctually

My tax situation was complex, but it was well understood by Everfair Tax. I can see this expertise is borne by strong experience.

Everfair Tax has been outstanding in their services and their client care

Everfair Tax has been quick and efficient in responding to my inquiries, providing me with information, and setting up meetings. They have been helpful and clear in their explanations of tax matters and my particular liabilities.


For updates featuring tax changes, reminders for deadlines, pointers on how to maximise your accounts, and information on Everfair Tax and their activities: you need look no further than our news & resources pages.

Contact Us

Need some UK, US or International advice?
Contact us now.

  • This field is for validation purposes and should be left unchanged.

Weybridge Office

No. 5 The Heights, Wellington Way,
Weybridge, Surrey KT13 0NY

Tel: 01932 320 800

London Office

40 Gracechurch Street,
London, EC3V 0BT

Tel: 020 3949 5999

Find us on