Rishi Sunak’s spring statement 2022 – the panel verdict
As the chancellor stood up today, families up and down the country were facing the worst real-terms income squeeze in 50 years – and inflation has just hit 6.2%. So, did he do enough to ease the cost-of-living crisis facing millions? The verdict is a resounding no.
The immediate support to families is woefully inadequate, with too little for the people struggling to afford life’s essentials and too much for those who don’t need it.
Only 7% of the benefits of the 5p cut to fuel duty will flow to the bottom fifth of households, compared to 33% for the richest fifth; the increase in the national insurance threshold doesn’t help the poorest and only provides a £250 cash boost to low-and-middle-income families; and the 1p cut in income tax in 2024 is little comfort for families struggling with rising prices today. And any support for families on low incomes has been dwarfed by the combined impact of price hikes and Sunak’s decision to reverse the £20 uplift to universal credit last autumn.
And yet there were things he could have done to take the pressure off families. He could have bolstered social security with a £15bn boost to give families at the sharp end of this crisis support worth £4,700 for a working couple with children; he could have opted to put a windfall tax on energy producers’ excess profits to soften the rise in energy prices for millions of families; and he could have invested £12bn in upgrading and insulating our homes, helping millions to reduce the energy they use.
Today we needed to see real and decisive action to tackle a crisis that people are dealing with every day – and yet help was thin on the ground, especially for those who needed it most. The chancellor is about to learn that you can’t tax-cut your
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