Spring statement predictions from fuel duty cut to more energy bill help – what could be in the mini-budget
BRITS will be hoping for measures that will tackle the rising cost of living in today’s spring statement.
From a fuel duty cut to more energy bill help, we explain the latest predictions for the mini-budget and how they could impact you.
Today’s announcement comes just over a week before energy bills will rise for millions of households.
The energy price cap will rise from April 1, adding almost £700 to gas and electricity costs.
Brits are also facing higher council tax bills and rising food costs in supermarkets.
Here’s what the Chancellor could announce in the spring statement today.
Fuel duty cut
It’s been reported that the Chancellor could cut fuel duty by as much as 5p per litre, as petrol prices have soared to record highs.
Fuel prices have been pushed up by the Russian invasion of Ukraine.
The average cost of filling up a family car has reached £90, with petrol prices at 165.9p per litre for petrol and 177.3p for diesel.
Currently drivers pay 57.95p a litre in tax on their fuel and the rate has been frozen in recent years.
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Fuel duty and VAT account for 52% of petrol prices, so a cut would bring down the cost at the pumps.
Motorists could save £2 on filling up the average car tank if a temporary 5p cut is introduced.
Delay to National Insurance rise
Prime Minister Boris Johnson announced a 1.25 percentage point National Insurance rise last summer that is due to come into effect in April.
That would add hundreds of pounds on to the tax bills of UK workers.
It’s been reported that the planned hike could be delayed in response to the rising cost of living.
However ministers have denied this and said that they will push ahead with the increase.
The Chancellor insisted it was his “mission” to cut taxes for everyone as soon as he could, but has not indicated he is going back on plans.
If it goes ahead as planned, someone on a £20,000 a year salary would pay an extra £130.45.
A worker earning £30,000 annually would pay £255.45 more, while those a salary of £40,000 would see payments rise by £380.45.
Raise National Insurance threshold
The Chancellor is also reportedly considering raising the threshold at which people start paying National Insurance.
Workers who are employed currently pay national insurance when they earn more than £184 a week, or £9,568 a year.
Self employed people pay the tax when they make a profit of £6,515 annually.
Raising those thresholds could give a tax break to hundreds of thousands of low income workers.
But in an interview with the BBC on Monday, Mr Sunak avoided answering questions on whether the threshold will be hiked.
More energy bill help
The government has already announced two schemes in response to rising energy bills.
In February ministers revealed a plan to give all households a £200 energy bill rebate.
However, that isn’t a grant and will have to be repaid in instalments.
It is also handing out £150 council tax refunds in April, to help households cover energy costs.
But that was before the Russian invasion of Ukraine, which has added fuel to rising wholesale energy prices.
Some experts are predicting that the energy price cap could hit £3,000 when it goes up again in October.
Families, charities and energy experts are hoping that more help will be revealed in tomorrow’s statement.
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It’s not clear exactly what the extra help could look like.
But The Sun has previously reported that one option could be doubling the £200 energy bill rebate to £400.
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