In his spring statement today (Wednesday, March 23), UK Chancellor of the Exchequer Rishi Sunak confirmed a 5p/L cut on fuel duty in Northern Ireland for a period of 12 months.
It will come into effect from 6:00p.m this evening.
The Chancellor made similar cuts across England, Scotland and Wales, in an effort to ease the cost of living across the UK.
Worth £2.4 billion, this is the biggest cut ever on all fuel duty rates and means a one-car family will now save on average £100; the average van driver will save £200; and the average haulier will save £1,500.
“Cuts to fuel duty will benefit people and businesses, which together with the freeze means people save £100/car on average a year,” said Sunak.
Further tax cuts
Chancellor Sunak also announced a tax cut for 800,000 workers in Northern Ireland, by raising National Insurance thresholds to £12,570 in July – saving the typical employee over £330/year.
A typical self-employed person will save over £250/year.
The basic rate of income tax will also be cut by 1p in the pound in 2024 when, as the Office for Budget Responsibility currently predicts, inflation and debt will be lower.
The Chancellor also set out a series of measures to help businesses boost investment, innovation, and growth – including a £1,000 increase to Employment Allowance to benefit around half a million businesses.
The UK government is also providing the Northern Ireland Executive with an additional £47 million through the Barnett formula next year, as a result of measures announced by the Chancellor today.
“Today’s spring statement shows the UK government’s commitment to delivering for people in all four corners of the UK,” Secretary of State for Northern Ireland Brandon Lewis said.
“People in Northern Ireland will be feeling financial pressures which events beyond our control have placed upon us all, but decisions such as cutting fuel duty, raising the National Insurance thresholds, and increasing the Employment Allowance will help alleviate these.
“The UK government is dedicated to seeing Northern Ireland’s potential for growth recognised and supported. I welcome the measures introduced by the Chancellor today and look forward to continuing to work to make Northern Ireland a better place to live, to work and to invest.”