Spring Statement 2022: Sunak pitches 2024 penny reduction for income tax amid reforms

National insurance base threshold lifted by £2,690

Chancellor Rishi Sunak announced a slew reforms and cuts to the UK tax structure in his spring budget statement delivered to the House of Commons today (23 March) though experts remain unsure as to their tangible impact on households navigating through a cost-of-living crisis.

Sunak said that income tax would be cut from 20% to 19% from 2024, representing a total cut of £5bn. Rebecca Williams, head of wealth planning at Brown Shipley, described this as a "massive curveball", adding that "this won't help anyone right now". "The chancellor has said this development has been budgeted, though we do wonder how these will be paid for," she said. "There may also be unexpected developments on the global stage, which impact fiscal planning. "Don't forget, behind the tax cuts, there are significant increases from the 6 April in regards to the Social Care Levy and ...