Chancellor Rishi Sunak has been delivering his Spring Statement as the costs of fuel, energy and food soar
Sunak says 70% of workers will get an effective tax cut as he raises the threshold for paying National Insurance (NI) by £3,000
He also announces a 5p cut to fuel duty to come into force at 18:00 tonight
And he announces that the basic rate of income tax will go from 20% to 19% by the end of Parliament in 2024
The Office for Budget Responsibility says inflation and higher taxes from April mean households face the biggest fall in living standards since records began
Shadow Chancellor Rachel Reeves says Sunak should have scrapped the planned rise to NI and put a windfall tax on oil and gas companies
The chancellor's challenge has been laid bare as prices rose by 6.2% in the 12 months to February - the fastest for 30 years
Motoring group, the RAC, says cutting fuel duty by 5p will take £3.30 off the cost of filling a typical 55-litre family car.
Prices to fill up the car with fuel were rising before the war in Ukraine - and the fallout from Russia's invasion has made things worse.
Adam Fleming
Chief political correspondent
Sunak's statement started with a reminder that we are in wartime.
The chancellor said President Vladimir Putin had mistaken the West’s strengths for weaknesses. With his defence of democracy and passionate political debate, to some Rishi Sunak will have sounded almost… prime ministerial.
Then there was some bad news about sluggish economic growth over the next few years and a warning about persistently high inflation this year.
Then came the big measures to help with the cost of living: A big cut to fuel duty that will cost £5bn, taking the VAT off energy efficiency improvements and giving councils more money to help people hit by rising prices.
“Is that it?” shouted one Labour MP.
The chancellor explained why he had limited room for manoeuvre: the consequences of the war in Ukraine could get worse and the government is having to spend more on the interest payments on its debt.
And has a memo gone round government departments telling them to blame the EU for stuff, to revive the electoral magic of Brexit?
The chancellor announces that government will raise the threshold for the amount people earn before they pay National Insurance.
"From this July, people will be able to earn £12,570 a year without paying a single penny of income tax or National Insurance," he says.
"That’s a £6bn personal tax cut for 30 million people across the United Kingdom.
"A tax cut for employees worth over £330 a year."
He adds: "The largest increase in a basic rate threshold ever, and the largest single personal tax cut in a decade."
Sunak says the incoming levy to pay for NHS and social care spending is necessary, as the funding is "needed now".
But he says that tax is "not incompatible with reducing taxes on working families".
Reality Check
The chancellor has announced a 5p per litre cut in fuel duty in his Spring Statement, as motorists struggle with rising prices.
Bear in mind the tax take from petrol and diesel increases as prices rise.
The average price of a litre of petrol has risen more than 40p a litre since last year’s Spring Statement, which means the government is getting an extra 7p per litre in VAT, which is the other tax the government imposes on fuel.
Diesel prices are up by nearly 50p a litre, almost 9p of which is VAT.
So the chancellor can afford to cut fuel duty by 5p and still be making more per litre in tax than he did a year ago.
Moving onto the tax system, Sunak reiterates his overall ambition to reduce taxes.
He says he is publishing a tax plan today, with a "principled approach" to cutting taxes over this Parliament.
This will first help families, then create conditions for higher growth, he says.
Sunak says the UK's underlying debt is expected to fall from 83.5% of GDP in the next financial year to 79.8% in 2026-27.
But he warns the OBR has said the UK's "fiscal headroom" could be “wiped out by relatively small changes to the economic outlook”.
The chancellor says in the next financial year the UK is forecast to spend £83bn on debt interest - and that's why the government has had to take "difficult decisions with the public finances".
Image source, PA MediaSunak says the government has already taken difficult decisions with public spending.
He says more borrowing is not "cost or risk-free", and it is down under the Conservatives.
Next, Sunak says the government's household support fund - money for councils to support vulnerable households - will be doubled to £1bn from April.
Next up, Sunak says for the next five years, homeowners will pay 0% VAT on energy saving materials, such as solar panels or heat pumps.
The chancellor says he can make the move as a result of Brexit.
Image source, HoCRishi Sunak now begins outlining his measures to help people through the cost of living crisis.
First up will be a 5p cut to fuel duty - "the biggest cut to all fuel duty rates ever".
The cut will come into force at 18:00 tonight and last until March next year, he says.
The chancellor says the most "significant impact" will be on the cost of living.
He says Covid already meant goods and energy prices were high, but the OBR now predicts inflation will hit 7.4% by the end of the year.
Image source, HoCRishi Sunak says the Office for Budget Responsibility says it is too early to say what the exact impact of the war in Ukraine will be.
He says their "initial view" is that the UK economy will grow by 3.8% this year.
He says the projections are for growth of 1.8% in 2023, and then 2.1%, 1.8% and 1.7% in the following three years.
The chancellor says the UK has a "moral responsibility" to use its "economic strength" to help Ukraine, including through economic and humanitarian aid, as well as sanctions against Russia.
But Sunak warns the actions taken against Russia are not "cost-free" and present a "risk to our recovery".
Image source, HoCChancellor Rishi Sunak begins by paying tribute to soldiers in the Ukrainian army.
He says the security of the economy is what means the UK is able to fund its army "to maintain our liberty" and impose sanctions against Russia.
Chancellor Rishi Sunak has got to his feet for the big moment of the day.
We will bring you all the updates from his speech, as well as analysis from our experts.
Image source, ReutersThat's the end of PMQs. In a few moments Chancellor Rishi Sunak will deliver his Spring Statement.
You can watch it by clicking the 'play' button at the top of this page.
Jenny Kumah
BBC News, Devon
Ava and Lee McFarland set up Coastal Laundry in Axminster last May
Ava and Lee McFarland set up Coastal Laundry in Axminster last May. Their main clients are hotels and self-catering businesses.
They invested £50,000 in new equipment last winter but now they are being hit by the rise in fuel and electricity prices.
Ava says: “We knew there were going to be increases after the pandemic, but being so intense and so soon after was not as expected.
"We forecast a 30-40% rise in our electric – we are just going to have to ride it out as best we can.”
Louise Male says she’s recently increased her hours to help make ends meet
Louise Male works at the laundry. She has two young children and her husband works full time but she’s recently increased her hours to help make ends meet.
Louise says: “Some weeks I am having to decide if I have electric or if I have food.
"I have to work more hours, just to afford what I can."
Louise would like to see more help for working people.
“I have to ask friends and family to help me out, because childcare is a fortune,” she says.
Roger Harrabin
BBC environment analyst
Image source, Getty ImagesThe main winners from a cut in fuel duty - if it happens - will be people who spend most at the pump. That means drivers in big cars who travel long distances.
Research from the New Economics Foundation suggests the wealthiest fifth of households spend almost five times as much on fuel as the poorest fifth.
What’s more, there’s been a rush among wealthier drivers in recent years to buy SUVs, which burn more fuel than standard cars.
Meanwhile, more than a third of the poorest households don’t own a car at all, according to the AA Foundation – so they won’t directly gain anything from the cut. They are also hit by soaring bus fares.
The fuel duty cut will be welcomed by many drivers struggling to cope with the cost of living squeeze – but it runs counter to environmental goals.
The website Carbon Brief calculates the decision since 2010 to freeze fuel duty has led to an increase in emissions of up to 5%.
Image source, Jay LaneAhead of the Spring Statement, we've been talking to people about where they're feeling the pinch and what they're doing to cope with rising prices.
Jay Lane from Nottingham says the rising cost of living has led to real changes in how his family live from day to day.
The 46-year-old says they have made some changes that are “having a real impact.”
The family have stopped using the tumble dryer and have turned off the automatic heating. “We just have it on when we need it,” he says.
“It’s not just energy, it's the cost of filling up cars and food prices as well. It doesn’t rule your life but it's definitely there, niggling in the background.”
Jay says he tells his sons they must remember to turn things off, keep their time on the computer down and shut doors as well, because it all helps.