Spring Statement 2022: Measures to tackle cost of living crisis 'unlikely to go far enough'

NI threshold raised

clock • 6 min read
Sunak vies to address worsening cost of living crisis in Spring Statement
Image:

Sunak vies to address worsening cost of living crisis in Spring Statement

Chancellor Rishi Sunak has laid out a plan to support families and businesses in the Spring Statement 2022, but some have argued it does not go far enough as the UK cost of living crisis worsens amid rising inflation, while the economic fallout of war in Ukraine is yet to be known.

Sunak pledged to raise the National Insurance threshold, "not by £300, but by the full £3,000", meaning it will be equivalent to the income tax threshold and resulting in a £6bn tax cut for 13 million people. Neil Birrell, chief investment officer at Premier Miton Investors, said: "The chancellor probably managed to avoid being tagged with the phrase "talking a good game on tax cuts" by moving to increase the threshold on National Insurance and promising that the basic rate of tax will be cut in 2024. "However, middle earners will still feel the squeeze. The reduction in growth foreca...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on UK

European-focused investment grade and high yield credit have highest inflows since April 2020.

Fixed income dominates ETF flows in July

Accounted for $32.5bn

clock 08 August 2022 • 2 min read
The bank’s 0.5% hike is the largest increase since it gained independence in 1997.
UK

Bank of England predicts recession as it enacts largest rate hike in 27 years

Inflation peak of 13%

Elliot Gulliver-Needham
clock 04 August 2022 • 2 min read
Total funds under management have fallen on the previous year, down to £1.4trn from June 2021’s £1.5trn.

Every asset class suffers outflows in second worst month on record

Responsible investment holds up

James Baxter-Derrington
clock 04 August 2022 • 2 min read
Trustpilot