The Chancellor of the Exchequer, Rishi Sunak, will be setting out the UK’s current financial situation during the Spring Statement in light of the recent sharp increase in energy, fuel and food prices made worse by Russia’s invasion of Ukraine.

The last announcement the Chancellor Rishi Sunak made was the 2021 Autumn Budget five months ago.

Mr Sunak revealed what was considered at the time as a post-Covid Budget, involving tax increases that he said were crucial due to the vast public spending the government was forced to introduce amidst the Covid-19 pandemic.

Since his announcement, a lot has happened which has affected the cost of living and the UK’s economic status, particularly due to Russia’s invasion of Ukraine.

Rishi Sunak. (Pic credit: Ian Forsyth / Getty Images)

The impact of the crisis includes the UK’s inflation rate, high energy prices, rising fuel costs and the rocketing price of food.

What will Rishi Sunak’s Spring Statement involve, when will he announce it and how can you watch it live?

Here is everything you need to know so far.

What is the Spring Statement?

The Budget is a significant annual event during which the Chancellor of the Exchequer, Rishi Sunak, lays out the UK’s economic position and reviews taxation.

These Budget announcements have been delivered for hundreds of years since Parliament was first formed.

They have been presented in the spring with an individual pre-Budget announcement in the autumn from the year 1998.

But during Theresa May’s leadership, Chancellor Philip Hammond switched the dates around during his term, creating what is now known as a Spring Statement.

Budget announcements usually consist of two parts: a summary of the economic climate and a detailed analysis of the taxation changes needed to raise the necessary amount of money.

The announcement generally lasts between an hour and two hours.

When is the Spring Statement 2022?

The Spring Budget this year is expected to take place on Wednesday, March 23, just a few days before Ofgem’s energy price cap is set to increase.

It will also coincide with the Office for National Statistics’ (ONS) announcement of the Consumer Price Index (CPI) for February 2022.

No time has been confirmed for the Spring Statement but Rishi Sunak is likely to deliver his announcement at the House of Commons at around 12pm.

How can I watch the Spring Statement?

The Budget announcement will air live on various news outlets including BBC Parliament at 12.35pm and Sky News at 12.30pm.

What is Rishi Sunak expected to announce?

The main focus of Wednesday’s Spring Statement is how the Chancellor will support households throughout the rising cost of living.

He is also expected to respond to an analysis presented by the Office for Budget Responsibility (OBR), which is said to be published on the same day as the Spring Statement.

According to the PA news agency, there are a few options that can offset the cost of living crisis.

1 - Fuel duty cuts

Potentially one of the simplest ways to support households with the rising cost of living could be through a cut to fuel duty.

The government has frozen duty for 11 years, however, there are now calls for a cut as oil prices have hit record highs as a result of the invasion of Ukraine and prices at petrol stations have rocketed to record levels.

Labour has found that the average family is faced with an annual increase of £386 on the cost of petrol and is calling for a cut to be funded by a windfall tax on energy firms.

2 - National insurance

Another idea is to put the previously announced national insurance rise on hold.

What is the Spring Statement? When is Rishi Sunak’s next announcement and how can I watch the Spring Statement?