What time is Rishi Sunak’s spring statement 2022 and what will be announced?

Rishi Sunak is facing intense pressure to help struggling families in today’s spring statement by alleviating the cost of living crisis, which has been dramatically exacerbated by the Russian invasion of Ukraine.

Polls have suggested one third of Britons fear they might not be able to pay gas and electric bills if they keep increasing.

The Chancellor’s last two spring statements were dominated Covid, with vast spending packages and bailouts to help businesses and workers get through the pandemic.

But now spiraling energy bills, surging inflation and a controversial National Insurance hike are dominating the agenda.

So what should we expect from this month’s statement?

What is the spring statement?

The spring statement is an annual statement made by the Chancellor to the House of Commons.

Known as the “mini-budget”, it is an opportunity for Rishi Sunak to provide an update on the overall health of the economy and an update on progress made since the autumn Budget.

Crucially, it does not include major tax or spending changes, which are made once a year at the autumn Budget.

The Chancellor can update the public on policies announced at the Budget, as well as make smaller funding pledges and policies.

When is the 2022 spring statement?

Sunak is set to deliver the spring statement on March 23 at around 12.30pm, alongside the latest Office for Budget Responsibility (OBR) forecasts, which are published twice a year.

Following the publication of the OBR forecasts, the Chancellor will make an address to the House of Commons around midday.

What is likely to be included?

The Chancellor will provide an update on his “plan for jobs” and the post-pandemic bounce back.

Despite the rapidly escalating cost of living crisis, he is understood to be resisting calls for another big package of help, with aides saying that costs could change a lot by October when the energy price cap will change again.

Instead it is thought he could focus on support for universal credit, while Boris Johnson could lay out a wider energy strategy as soon as this week.

In February the Chancellor announced a package of support measures in response to rising costs of living, including a £150 council tax rebate for homes in bands A to D, as well as a £200 credit on energy bills to be repaid over the next five years.

New analysis by the Institute for Fiscal Studies (IFS) suggests the impact of the Russian invasion of Ukraine on energy prices means those measures may now protect consumers from just a fifth of the coming increase.

With public borrowing expected to come in under previous forecasts for the year, there is hope of further help or other benefits such as child benefit being increased to keep up with rising bills.

The Government has already said it will push ahead with plans to expand the eligibility criteria for the Warm Home Discount scheme, increasing the number of people who can apply by close to a third. On top of this the value of the benefit will rise by £10 to £150 from October.

Will the National Insurance rise go ahead?

Treasury sources have continued to reject the idea of ditching the National Insurance increase due to come into force in April.

The rise will tax the average worker £250 a year, and raise costs for firms which hire staff.

However some have argued that the plan for an immediate rise may be political rather than economic.

Sir Charlie Bean, a senior official previously charged with vetting the Treasury’s plans, told the BBC: "There is no problem in the UK borrowing several billion pounds for one extra year. What you can’t run is sustained large deficits, but the pace at which you close a deficit is basically a political judgment."

This echoes calls from the shadow chancellor Rachel Reeves last month, who said there was still time to halt the rise.

There are concerns the increase will have a higher impact on the lower-paid. This is because workers pay 12 per cent National Insurance on earnings between £9,564 (£9,880 from April) and £50,268. However, earnings above this amount attract a rate of just 2 per cent.

Scrapping the rise would ease pressure on struggling households.