The Office for Budget Responsibility has downgraded the growth forecast for this year to 3.8%, Chancellor Rishi Sunak has told MPs.
Chancellor’s spring statement – live
Here are all the details as they come in of Rishi Sunak’s response to the cost of living crisis
• Key updates
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Disposable income to fall by the largest amount since records began
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At a glance: Key points from the 2022 spring statement
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What the 5p fuel duty cut will mean
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Sunak promises income tax cut
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Employment Allowance to increase – ‘a tax cut for half a million small businesses’
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70% of workers ‘to get effective tax cut’ as Sunak lift’s NI threshold by £3,000
The Chancellor’s statement live
Here’s what York business leaders want
We asked two leading figures in the high street and hospitality sectors what they wanted from the Chancellor today.
Here’s what David Skaith, the chair of York High Street Forum, told us:
Many businesses have seriously struggled to just survive after the pandemic, to now only be thrust into a cost of living crises, the invasion of Ukraine and the ongoing issues of leaving the EU.
We need a delay on the National Insurance rise. And some kind of cap on energy prices, especially for smaller businesses who are still struggling after the pandemic.
And Helen Heraty the owner of award winning boutique hotel Grays Court on Chapter House Street in York, called for the cut in VAT to stay put for hospitality.
A raise now would be “catastrophic, with accommodation and food being the hardest hit,” she told YorkMix, adding
The increase in VAT is money that goes straight into the government’s pocket – which means businesses will have to raise prices for consumers who are already struggling with the increasing cost of living.
You can read the full story here.
We’re live blogging the Chancellor’s statement
Chancellor Rishi Sunak has admitted the financial outlook is “challenging” because of soaring inflation and the Russian invasion of Ukraine, Downing Street has said.
He is due to give his much-awaited spring statement on how he will tackle the cost of living crisis this lunchtime, and we’ll be live blogging it here.
No 10 said he provided an update on the economic situation to ministers during Wednesday morning’s Cabinet meeting.
A statement read: “The Chancellor provided an update on the economic and fiscal picture, and described the outlook as challenging given the global shocks we are facing as a result of the conflict in Ukraine and rising inflation.
“He said that throughout the pandemic, the Government has shown the British people we are on their side and we will continue to stand by them through the uncertainty that we now face.
“He described how the sensible management of the public finances enabled the Government to step in and help people with £9 billion of support for their energy bills in February.
“He said that this Government would continue to take a responsible and sustainable approach in order to be able to grow a stronger, more secure economy for the future.”