2022 Spring Statement

2022 Spring Statement

The Chancellor delivered his 2022 Spring Statement on 23 March. Key points affecting business include:


  • An increase to the level of earnings at which people start paying National Insurance contributions (NICs) from £9,880 to £12,570 in July 2022.
  • A reduction to Class 2 NICs to zero for the self-employed with profits between the small profits threshold and the lower profits limit, from April 2022.
  • A temporary 12-month reduction of 5p per litre on fuel duty.
  • From April 2024, the basic rate of income tax will be cut from 20% to 19%.
  • An increase in the employment allowance (which allows employers to reduce their NICs payments up to a certain amount) from £4,000 to £5,000, from April 2022.


  • VAT on energy-saving products such as solar panels, heating pumps and roof insulation will be cut from 5% to zero for five years.
  • From April 2022 there will be no business rates due on a range of green technology used to decarbonise buildings, including solar panels and batteries. Eligible heat networks will also receive 100% relief.

Allowances and reliefs

  • The Annual Investment Allowance has been temporarily increased to £1 million until 31 March 2023. It is available to sole traders and partnerships and will cover the qualifying plant and machinery expenditure of over 99% of businesses.
  • R&D tax reliefs will be reformed to deliver better value for money. The scope of reliefs will also be expanded to cover data, cloud computing and pure maths.
  • The Government will review how Apprenticeship Levy funds can be spent and whether more flexible apprenticeship training models can be supported.

Read the Spring Statement in full

Related Updates