Some highlights:

  • Predicted growth in UK economy this year scaled back from 6% to 3.8%
  • Inflation to average 7.4% in 2022
  • Additional 1.25% national insurance charge unchanged
  • Reduction in fuel duty of 5p per litre (worth 6p including VAT) for 12 months (coincidentally roughly equal to the additional VAT collected per litre on the increased price of petrol over the last 12 months)
  • NIC starting point to be increased by £3,000 to align with personal allowance (reducing impact of NIC hike on the lower paid)
  • 1p reduction in basic rate of income tax promised for 2024
  • Frozen personal allowance until 2026 (announced in 2021 Budget) means significant tax increases as earnings rise on inflationary pressure
  • The employment allowance (a credit against the national insurance payable by small employers) will increase by £1,000 to £5,000 from April 2022, reducing the impact of the 1.25% increase in employers NIC
  • Changes previously announced to student loan repayments to remain, with lower income threshold and longer repayment terms