Rishi Sunak to promise ‘security for working families’ in spring statement

theguardian.com:

Rishi Sunak will promise “security” to cash-strapped families as he announces a fresh package of measures to tackle the cost of living crisis on Wednesday, but will continue to underline the importance of fixing the public finances.

The chancellor has been under intense pressure to take action to help households with the rocketing cost of fuel and other essentials. The financial expert Martin Lewis told MPs on Tuesday that many households are facing a “fiscal punch in the face” when the energy price cap rises next month.

Sunak is widely expected to use his update on the economy to announce a cut in fuel duty of at least 5p a litre, but hinted on Tuesday night that he might come up with a more extensive package of support, saying he would “stand by” hard-working families.

Options open to him include raising the threshold at which workers start paying national insurance contributions (NICs), deferring the 1.25-point NICs increase for employers and employees, uprating state benefits in line with the 8% inflation rate expected for April, and providing help to energy-intensive businesses.

The NICs increase, which is earmarked for health and social care, is loathed by many of the chancellor’s Tory colleagues, including some cabinet ministers, who would like to see it scrapped. However, Sunak and the prime minister signed a joint op-ed in January insisting it was “the right plan”.

Raising the threshold at which it starts to be paid, which will stand at £9,880 from April, closer to the personal allowance of £12,570 that applies to income tax, would exempt lower earners, a move likely to be popular with Sunak’s party.

The Labour leader, Keir Starmer, accused the chancellor of introducing the controversial tax rise to give himself the