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Spring Statement budget calculator: What does it mean for you?

See how latest cuts, freezes and and hikes will affect your wallet

Chris Baynes
Wednesday 23 March 2022 15:08 EDT
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Spring Statement: The key points from Rishi Sunak's mini budget from fuel duties to income tax

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Rishi Sunak shielded lower earners from the impact of his national insurance hike, slashed 5p off fuel duty and promised to cut income tax by 1p in 2024 in his Spring Statement.

The chancellor promised “the biggest net cut to personal taxes in over a quarter of a century” in Wednesday’s mini-Budget, but households still face a record fall in living standards amid soaring inflation and the economic impact of the war in Ukraine.

Mr Sunak unveiled a plan to increase the threshold at which people start paying national insurance contributions by £3,000 to £12,570 from July, as part of plans to help with the cost-of-living crisis.

He promised further support in 2024 with a pledge to cut the basic rate of income tax from 20p in the pound to 19p, as well as scrapping VAT on energy-saving materials such as solar panels, heat pumps and roof insulation for five years.

Despite the measures announced by the chancellor, the overall burden of taxes is set to reach the highest level since the late 1940s by 2026-27.

Clearly, there is much to consider. The online calculator below, created by accountants Blick Rothenberg, offers a quick estimate on how the latest raft of changes will affect you.

Input a few details and it will offer an indication as to how much better or worse off the chancellor’s announcements will leave you in the pocket.

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