Spring Statement 2022: how it affects employment and housing
With increasing fuel prices and concerns over the rising cost of living, yesterday’s Spring Statement was highly anticipated by businesses and families alike. So what has Rishi Sunak, Chancellor of the Exchequer, got planned to help the UK get through the next few months?
The Chancellor’s Spring Statement was heavily focused on the conflict in Ukraine and he paid tribute to all of those affected. He also predicted that the most significant impact of the war in Ukraine for the UK would likely be the rising cost of living.
Goods and energy prices have already increased due to the Covid-19 pandemic, however, the Office for Budget Responsibility (OBR) predicts inflation will hit 7.4% by the end of the year.
Energy-saving initiatives for homeowners
Sunak announced that homeowners will pay 0% VAT on energy-saving materials, such as solar panels or heat pumps, for the next five years.
This is welcome news for homeowners who want to make their properties as energy-efficient as possible. The initial cost of installing solar panels or carrying out work to make a home eco-friendly can be overwhelming, and despite the long-term benefits and savings, many homeowners are put off from doing so.
This VAT reduction could make a huge difference for existing property owners and also first-time buyers seeking a more environmentally friendly way of life.
The housing market has been booming in recent months, despite the end of the Stamp Duty holiday, so we could well see an increase in those wanting to buy new builds in particular.
Of course, the negative of an increase in homeowners wanting to make energy-efficient improvements is that this could, in turn, lead to an increase in claims for property disputes. Whether that’s objections from neighbours, right of way disputes, or claims against builders.
If you are wondering what your rights are regarding a property or builder dispute, our dispute resolution solicitors can provide common-sense advice.
If you are considering buying a new build, our specialist new build solicitors in Bristol and South Gloucestershire are here to help. We can advise you on all aspects of buying a new build home, including Land Registry requirements.
National Insurance and Income Tax payments to be reduced
The Chancellor announced the threshold for the amount people earn before they pay National Insurance will rise. From July, employees will be able to earn £12,570 a year without paying any income tax or National Insurance.
The basic rate of Income Tax will also be cut from 20p to 19p per pound.
As part of the Government’s new tax plan, employment training in the private sector could be introduced. The Government will assess whether the apprenticeship levy, introduced in 2017 to pay for skills training, is doing enough to bring in new recruits to the private sector.
Employment Allowance increase for businesses
In two weeks’ time, the Employment Allowance will increase to £5,000 for small businesses. This is a tax cut worth up to £1,000 for half a million businesses.
The reduction in National Insurance and Income Tax is, of course, a good thing for employees. With the rising cost of living, any way to save money will be welcome.
Contact our employment law solicitors in Bristol
If you need employment advice, whether as an employer or an employee, our expert employment law solicitors are here to help. We advise clients across the UK from our six offices in Bristol and South Gloucestershire. Call us on 0117 325 2929 or fill out our enquiry form.
The effects of what was announced in the Spring Statement will become clear in the coming months. In the meantime, whether you are looking for advice on employment, a property dispute, buying a new build or anything else, we are here to help.