The Chancellor's Spring Statement


The big announcements

Sunak is cutting fuel duty by 5p for one year.

This is meaningless when families face an income loss of £1,100 this year due to spiralling prices and Government tax hikes.

In fact, this measure will save the average driver just £70 - a drop in the ocean.

On the other hand, Liberal Democrats would slash VAT. That'd save drivers £600 a year and protect them from spiralling fuel costs. Drivers wouldn't pay a penny more for fuel this year - that's what real help looks like.

The threshold for National Insurance is going up

That's it?

 

Inflation is soaring out of control and the Chancellor is tinkering around the edges. Families need help now - and Sunak is going ahead with hikes that'll hit them for hundreds of pounds.

While Sunak squeezed British families harder and harder, one group got off scot-free - oil and gas companies, who are raking in cash off the back of this crisis.

Liberal Democrats would introduce a year-long Windfall Tax on these bumper dividends. We'd use the money raised by this to implement a rescue package saving the average family nearly £1,000 a year.

There's nothing to stop the Tories from doing this - but they'd rather protect their ultra-wealthy chums. They've made it clear whose side they're on.

 

Seeing through the spin

Sunak wants you to believe he's a low-tax chancellor. But over the last two years, he's broken manifesto promise after promise to introduce 15 tax rises on families and businesses.

He's frozen the Personal Allowance and Higher Rate threshold for four years. That'll drag nearly 5 million people into a higher rate of tax.

And while he's telling us to tighten our belts and get on with it, he's wasting more of our money than any other Chancellor - ever. He’s wasted £10 billion on unusable PPE, written off over £4.3 billion in Covid fraud (and won't even let the National Crime Agency look into it!) and handed big banks a £4 billion tax cut.

And perhaps most disappointingly - the most desperately in need in our society have had their Universal Credit cut by over £1,000. Increases in rates are well below inflation, and the "offset" of reduction in the taper rate does little in practice.

Why is Sunak punishing the weakest in society at a time when they need our help the most?

 

A better, Liberal alternative

Cutting VAT

Liberal Democrats want to cut the standard rate of VAT from 20% to 17.5% - saving the average family £600 every year.

 

Windfall Tax

We'd force big oil and gas companies to pay their fair share, and use that money to:

✓ Double the Warm Home Discount and extend it to everyone on Pension Credit and Universal Credit

✓ Double the Winter Fuel Allowance

✓ Roll out an emergency home insulation programme

✓ Support small businesses in energy-intensive industries.

 

Scrapping unfair tax hikes

Under our plans, we'd ditch the hike on National Insurance and the stealth Income Tax rise implemented by the Tories freezing thresholds.

 

Universal Credit

Britain deserves a fairer deal. And the Liberal Democrats are fighting for that in Parliament, in the media and on the doorstep. And we called on the Chancellor to raise benefits in line with the true level of inflation - currently at 6.2% - rather than a paltry 3.1%.

Rishi Sunak can put out as many expensively-produced spin videos as he wants. But we know he's turned his back on the British people.

Britain deserves a fairer deal. And the Liberal Democrats are fighting for that in Parliament, in the media and on the doorstep.


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