Hucknall MP says Chancellor's spring statement was good news for town residents

In his Spring Statement to the House of Commons, the Chancellor Rishi Sunak announced his new ta plan to reduce and reform taxes across the United Kingdom – tackling the cost of living and incentivising private sector-led growth.

The International Monetary Fund said the UK had the fastest growing economy in the G7 last year and Mr Sunak said this announcement sought to remain responsible on public spending and public finances to protect and increase this growth whilst helping families with the cost of living.

Measures set out by the Chancellor include reducing and reforming taxes by:

Slashing fuel duty by five pence for 12 months, coming into effect immediately and delivering a £5 billion tax cut for drivers.

Together with the fuel duty freeze, Mr Sunak said this would save car drivers £100, van drivers £200, and HGV drivers £1,500 this year.

Mr Sunak also announced he was raising the National Insurance personal threshold from £9,500 to £12,570 from July, delivering the largest increase in a starting personal tax threshold in British history.

This is equivalent to a £6 billion tax cut for nearly 30 million workers and worth more than £330 a year starting in July, across the entire UK.

He added that this was the largest single personal tax cut in a decade.

The Chancellor also announced he was doubling the existing Household Support Fund to £1 billion, delivering an additional £500 million to the fund.

The fund helps the most vulnerable families with the cost of living and is distributed through local authorities in England, who have discretion over exactly how the funding is used, and is expected to benefit three to four million vulnerable households.

However, the Chancellor also acknowledged that the steps the UK is taking to sanction Russia over its invasion of Ukraine are not cost free for people at home and the biggest impact would be for working families.

Mr Spencer said: “The situation in Ukraine reminds us that the UK’s security and ability to be a force of good in the world is, in large part, based on the strength of our economy.

“That is why this Government is going further to strengthen our economy, publishing a new plan to reduce and reform taxes – including cutting fuel duty, cutting the basic rate of income tax and cutting national insurance for 30 million working people.

“This tax plan delivers the biggest cut to personal taxes in over a quarter of a century – simplifying our system in the long-term whilst we deliver immediate relief for cost-of-living pressures.”

Mr Sunak added: “It is only because this Government is taking the tough but responsible decisions that we can announce taxes are being cut and debt is falling.

“This tax plan will help families with the cost of living, create the conditions for private sector-led growth, and share the proceeds of growth fairly.

“We are delivering the biggest net cut to personal taxes in over a quarter of a century, and that is only possible because of the disciplined approach to public spending only a Conservative Government can provide.”

The plans have been welcomed in part by focus groups for the help they give to families.

But many felt the Chancellor had not gone far enough in helping people with the cost of living crisis and criticised some of the measures of just being early election ploys.

Michael Foote, from editor-in-chief of money saving website Quotegoat.com, said: “Finally some good news for struggling families, but the Chancellor’s announcement falls incredibly short of coming close to solving the cost of living crisis."Sadly millions of struggling households up and down the country still face the reality of fuel poverty and it’s crass to wave an income tax reduction under our noses, only to follow it up with the fact it won’t happen until 2024, which just so happens to coincide with when the next General Election is.”

Commenting on the cut in fuel duty, Alex Kindred, from comparison website confused.com, said: “Fuel prices continue to rise at record-breaking figures, so the cut to fuel duty is a small step in the right direction.

"With the average cost of a tank of petrol nearly at £91, the cut will mean 5p off per litre and around £2 off your bill, on average.

"Although it might not seem a lot in the grand scheme of things, if you tally this up every time you fill up your tank, the savings do add up.

"However, this is still extremely high and unaffordable for some, so it's clear there's still a need to cut fuel costs.”