What is the Spring Statement 2022?

The Chancellor, Rishi Sunak, will deliver the Spring Statement 2022 in the House of Commons on Wednesday 23 March 2022.

In December 2021, he asked the Office for Budget Responsibility (OBR) to prepare new fiscal forecasts, setting out its expectations for the economy in the coming years.

At the Spring Statement 2022, the Chancellor will set out those forecasts and the Government’s response to them.

He is also expected to announce a range of consultations about future tax and spending measures.

Despite having been Chancellor for two years, and having delivered three Budgets, this will be the first time Mr Sunak delivers a Spring Statement.

What will be announced at the Spring Statement 2022?

It is unlikely that we will see many major announcements at the Spring Statement 2022.

There will be significant pressure on the Chancellor from various quarters to act on the energy prices and the cost of living as households and businesses start to feel the pinch. However, the Government’s position is currently that it took steps in the autumn to deal with rising living costs, so we may not see an announcement.

What is the difference between the Spring Statement 2022 and the Budget?

Unlike at a Budget, we are unlikely to see major tax and spending announcements at the Spring Statement 2022.

The Chancellor may announce some more minor measures or adjustments to existing measures, but major announcements are not generally made at statements.

Nevertheless, the content of any consultations he announces, could give a strong indication of the Government’s intentions when it comes to tax and spending over the coming years.

Don’t we normally have an Autumn Statement and a Spring Budget?

For many years, there was a Budget in the Spring and an Autumn Statement. However, the then Chancellor, Phillip Hammond announced at the Autumn Statement in 2016 that he would move the Budget to the autumn and have a Spring Statement.

The rationale was to allow businesses and individuals more time to prepare for tax changes ahead of the start of the new tax year on 6 April each year.

However, because of Brexit and then the COVID-19 Pandemic, this is not what has actually happened. Since then, 2018 was the only year in which we have had a Spring Statement followed by an Autumn Budget.

In 2017, there were Spring and Autumn Budgets. In 2019, there was no Budget at all. In 2020, there was only a Spring Budget. And, in 2021, there were Spring and Autumn Budgets.

Indeed, Sajid Javid did not deliver a Budget or Statement during his term as Chancellor.

What time will the Spring Statement 2022 take place?

The Chancellor will speak immediately after Prime Minister’s Questions on Wednesday 23 March 2022, which typically finishes at 12.30pm.

How can I watch the Spring Statement 2022?

The Spring Statement 2022 will be broadcast live on the Parliament website and on the major new channels.

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