Xeinadin Group Spring Statement Summary
The Chancellor, Rishi Sunak, gave his Spring Statement 2022 to Parliament on 23 March. Here’s Xeinadin Group’s summary of the Spring Statement with all the key information you need to know.
Highlights of the Spring Statement 2022
The Chancellor declared his intentions to keep his promise of reducing taxes by the end of his current term. Key takeaways from the statement include:
- The economy is projected to grow 3.8 per cent over the course of the year
- By 2024, the Office for Budget Responsibility (OBR) expects inflation to be under control
- Inflation is currently at 6.2 per cent and is expected to reach 7.4 per cent by the end of the year
- Country debt is forecast to fall from 83.5 per cent of GDP in the 2022/23 financial year to 79.8 per cent in 2026/27
Core aims for the remainder of the current Parliament
The Chancellor announced his core aims for the remainder of the current Parliament. This includes helping families with the cost of living, facilitating growth in the economy and sharing the proceeds of growth fairly – ultimately resulting in the reduction of income tax to a basic rate of 19 per cent.
The Chancellor’s ‘Tax Plan’
The Chancellor has released a document to outline his ‘Tax Plan’ with the tag line ‘My Vision for a Lower Tax Economy’. This summarises all key points addressed in the budget statement.
“Tax – an important lever in Government hands to drive the “security of a faster growing economy” acknowledges the Chancellor today – did he press that lever hard enough is the question?”
Liz Maher, Centurion VAT Specialists Xeinadin Group
Xeinadin Group’s Thoughts on the Spring Statement
The Xeinadin Group notes that, in his statement, the Chancellor demonstrated the importance of tax strategy – something that Xeinadin, as business advisors, agree with. As an area of constant change, tax strategies are essential to get right and must be responsive to change.