Labour responds to Rishi Sunak's Spring Budget

24th March 2022

Labour's shadow chancellor has responded to Rishi Sunak's Spring Budget announcement.

Labour's shadow chancellor Rachel Reeves has hit out at Rishi Sunak’s Spring Budget announcement for not supporting those living in poverty. No rise for those social benefits. Nothing for pensioners.

The chancellor’s statement announcement comes amid a rapidly worsening cost of living crisis, which has already impacted two thirds of British adults, with rising food prices and energy costs cited as the main drivers.

Inflation, which reached 6.2 per cent in February, is forecast to average 7.8 per cent for the year.

In response to the crisis, Sunak announced another £500million to extend the Household Support Fund, which was due to end this month and announced a 5p per litre cut to fuel duty rates until March 2023, a move criticised by Labour.

He said he will raise the national insurance threshold by £3,000 to £12,570 a year and cut the basic threshold for Income Tax from 20p in the pound to 19p from 2024.

The chancellor also announced that VAT for homeowners using energy efficient materials such as solar panels and heat pumps will be scrapped for five years.