LONDON (Reuters] – Rishi Sunak, the British finance minister, reduced taxes on workers and lowered a fuel duty Wednesday in an attempt to ease a tight cost of living amid rising inflation and slower economic growth.

Sunak announced a semi-annual budget update to parliament. He said that he would increase the threshold at which workers begin paying national insurance or social security contributions by 3,000 Pounds ($3,958.50).

He said that the reduction was equivalent to more 330 pounds per year for each worker. It is the biggest single tax cut in the past decade.

Sunak maintained his plans to raise national insurance payments starting next month. It is part of his plan, which he said would allow him to spend more on social care following the COVID-19 pandemic.

His Spring Statement announced that he would reduce the basic income tax rate by one pence in the Pound in 2024. Meanwhile, the reduction in fuel duty will begin on Wednesday evening and run until March 2020.

Sunak, as well as Prime Minister Boris Johnson, were under constant pressure to assist households in their struggle to keep up with increasing living expenses.

Sunak revealed new projections that the British economy would grow slower than expected this year, due to uncertainty caused by Russia’s invasion of Ukraine. Inflation will also be higher.

Forecasts by the Office for Budget Responsibility showed that the economy would grow by 3.8% in 2022. That’s a drastic decrease from the 6.0% forecast in October.

The consumer price index measures inflation at 7.4%, which is higher than the October forecast of 4.0%.

Data earlier showed that Britain’s consumer inflation reached a record 6.2% in the last month. This was due to soaring energy costs and rising food prices, something which may prove difficult for some households.

OBR projected that gross domestic products would rise by 1.8%, 2.1%, 1.8%, and 1.8% between 2023, 2024, 2025, and 2025.

OBR predicted growth of 2.1% to 1.3% in October and 1.6% in the following three years.

($1 = 0.7579 pounds)