The Chancellor, Rishi Sunak, has given his update on the Government’s financial plans in the Spring Statement, or as some call it: ‘the mini-budget’. There was lots of talk about what he might announce, especially with all the headlines about the rising cost of living. So, if you missed his speech, here’s what you need to know.
THE COST OF GREENER HOMES
One of the biggest changes is going to impact jobs which make your customers’ homes more energy efficient. The VAT on energy-saving solutions like solar panels, heat pumps and insulation is going to be scrapped, making them more affordable. Don’t be surprised if you see a natural increase in demand, but either way, this is a big selling point to talk to your customers about if they’re thinking about extensions and renovations.
It’s definitely worth becoming more familiar with more products and solutions that help with energy efficiency and making homes more comfortable. There’s lots of advice out there and a great place to start is the Renewable Technologies section in our Making Better Homes hub.
You will have noticed that filling up your van or car has been getting more and more expensive in recent weeks. But there’s finally some good news! The Chancellor confirmed that fuel duty across the UK will be cut by 5 pence per litre taking effect at 6pm on 23rd March. To put that into perspective, you’ll probably save around £3 every time you fill up a 60-litre van. Fill up once a week? You’ll save about £150 a year.
CHANGES TO YOUR PAY PACKET
There are changes on the way for National Insurance as well. The threshold at which you start paying National Insurance is going up to £12,570 from £9,568. That will match the level for income tax and the Chancellor says that’s going to equate to a tax saving of over £330 per year.
That’s not it for National Insurance. If you’ve got people on your payroll, you’ll get a little more help. The Employment Allowance is rising from £4,000 to £5,000, reducing your National Insurance liability by £1,000 from April this year.
FURTHER DOWN THE LINE
The Chancellor also said that we’ll see a cut in the base rate of income tax, from 20p to 19p before the end of this parliament in 2024.
He also said he’d look more closely at the current apprenticeship levy at some point over the next year. He thinks more can be done to encourage people to get into vocational training. We’ll update you on this, as and when it develops!