Spring Statement 2022: Rishi Sunak delivers budget update to the House of Commons

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Families face the biggest hit to their living standards on record as the tax burden rises to its highest level in 70 years amid surging inflation and a raid on National Insurance.

Taxes will account for more than 36pc of GDP, up from 33pc before Covid, representing the fastest jump in the burden in a generation and taking the Treasury’s haul to its highest level since the late 1940s.

At the same time households will suffer the biggest drop to their spending power on record as they are beset by tax rises and surging inflation.

The Office for Budget Responsibility warned that real household disposable incomes will fall by 2.2pc this year, the biggest annual drop on records dating back to the 1950s. The Chancellor, Rishi Sunak, refused to cancel a planned rise in National Insurance but vowed to cut income tax by 1p to 19p by 2024.

The crisis represents a bigger hit than families suffered during the pandemic or the financial meltdown in 2008.

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