This afternoon the Chancellor, Rishi Sunak MP, delivered his 2022 Spring Statement. He set out some measures related to cost of living pressures, and also published the Government’s Tax Plan which is the Government’s three-part plan to for the remainder of the Parliament. 

In response, we have issued a media statement. 

The Government is launching a second round of the Levelling Up Fund and published a refreshed prospectus, inviting bids from eligible organisations across the UK.

The Government is bringing forward the implementation of business rates relief for eligible plant and machinery used in onsite renewable energy generation and storage, and a 100 per cent relief for eligible low-carbon heat networks with their own rates bill to April 2022. Local authorities will be compensated for the loss of income as a result of these measures and will receive new burdens funding for any administrative and IT costs.

The Government is allocating £25.3 million of the previously announced Changing Places fund for Changing Places toilets, with an additional £6.5 million allocated to areas where there is little or no provision.

The Government will cut the duty on petrol and diesel by 5p per litre for 12 months. This will take effect from 6pm on 23 March on a UK-wide basis.

The annual National Insurance Primary Threshold and Lower Profits Limit, for employees and the self-employed respectively, will increase from £9,880 to £12,570 from July 2022.

The Government will reduce the basic rate of income tax to 19 per cent from April 2024. The change will be implemented in a future Finance Bill. A three-year transition period for Gift Aid relief will apply, to maintain the income tax basic rate relief at 20 per cent until April 2027. This is conditional on the Government’s fiscal principles being met in the future.  

The Government will examine whether the current tax system – including the operation of the Apprenticeship Levy – is doing enough to incentivise businesses to invest in the right kinds of training.  

The Government is extending the VAT relief available for the installation of energy saving materials (ESMs). The government will also introduce a time-limited zero rate for the installation of ESMs. The changes will take effect from April 2022.

The Government is providing £48.8 million of funding over three years to support the creation of a new Public Sector Fraud Authority and enhance counter-fraud work across the British Business Bank and the National Intelligence Service.  

The Government is investing £161 million over the next five years to increase compliance and debt management capacity in HMRC.  

The Government is investing £12 million to help claimants keep their tax credits accurate. This is to support a smooth transition to Universal Credit.  

The Government will launch a new Innovation Challenge across central government departments to crowdsource ideas for how government can operate more effectively.  

The government will publish guidance for a new series of reviews of Arms Length Bodies (ALBs). These reviews will scrutinise the work and effectiveness of particular ALBs.  

I hope this short, on-the-day summary of the direct and indirect implications for councils of today’s Spring Statement is helpful. Do please let your Principal Adviser know if the Statement raises any concerns we can usefully pursue with Government.