Chancellor Rishi Sunak slammed over Spring Statement ‘gimmicks’ as families brace for biggest hit to living standards since the 1950s

Unveiling his Spring Statement ‘mini budget’ to the House of Commons, the Conservative spending chief confirmed a widely predicted 5p per litre cut in fuel duty due to come into effect from 6pm on Wednesday and last until March next year.

Plans to reduce income tax from 20 pence in the pound to 19, by 2024, were among the surprise policies announced, while the threshold for paying National Insurance is also set to increase by £3,000 from July.

But the moves have prompted criticism that the government is not doing enough to address an escalating cost of living crisis.

“The Spring Statement failed to take the steps required to control runaway inflation – prices are rising at their fastest rate for thirty years and pay is failing to keep up,” said Easington MP Grahame Morris.

“Our communities are paying a heavy price for the economic failure of a Conservative Government, Prime Minister and Chancellor, who are breaking their promises to the British people.

“Short term gimmicks will offer little relief to those below the poverty line.”

The Institute for Fiscal Studies, a think tank, has warned the Chancellor has failed to help the “very poorest”, predicting the biggest hit to living standards since the 1950s.

Following the statement, Sunak claimed the new measures announced would see 70% of workers paying less in National Insurance contributions, as well as warning sanctions on Russia following its invasion of Ukraine would not be “cost-free” for the UK economy.

Hartlepool MP Jill Mortimer praised the statement.

She said: “This Government is going further to strengthen our economy, publishing a new Tax 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 – meaning people can keep more of what they earn.

“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.”

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