The situation in Ukraine reminds us that the United Kingdom’s security and ability to be a force for good in the world is in large part based on the strength of our economy. Thanks to the Governments actions, the economy is recovering well, with record job vacancies and unemployment back at pre-crisis levels.
I was pleased to hear the Chancellor's statement in the Commons this week outlining measures to help families across the country. I was delighted that the Chancellor has now announced that fuel duty will be cut by 5p per litre from 6pm on the 23rd of March. This tax cut, worth £2.4 billion, builds on action that Conservative governments have taken over the last twelve years by freezing fuel duty. It is the biggest-ever cut on all fuel duty rates and means that a one-car family will now save on average £100. The Household Support Fund is also being doubled by £500 million to £1 billion overall to ensure that support continues to be provided to the city’s most vulnerable families with the rising cost of living.
I also welcome the further help for small businesses, including £1,000 increase to Employment Allowance to benefit around half a million smaller firms and a review of the Apprenticeship Levy to encourage employers to invest more in adult training. It comes on top of 50% business rates relief for eligible retail, hospitality, and leisure properties from April, worth £1.7 billion. Using the UK’s Brexit Freedoms, the Chancellor announced VAT on energy-saving materials will be scrapped – providing a £250 million tax cut for homeowners. Communities will also benefit from infrastructure projects via the £4.8 billion Levelling Up Fund, which has already seen Wolverhampton receive £20 million for a new integrated city learning quarter.
So that people can keep more of what they earn, the basic rate of income tax will be cut for the first time in sixteen years when inflation is expected to be back under control with debt falling sustainably and the economy growing. In the meantime, the Chancellor has announced that National Insurance starting thresholds will rise to £12,570 from July, meaning hard-working people across the UK will keep more of what they earn before they start paying personal taxes. The cut, worth over £6 billion, will benefit almost 30 million working people with a typical employee saving over £330 in the year from July. This means that the UK now has some of the most generous tax thresholds in the world.
Chancellor of the Exchequer, Rishi Sunak MP said: “Today’s new Tax Plan will help families with the cost of living, create the conditions for private sector-led growth, and share the proceeds of growth fairly. We are delivering the biggest net cut to personal taxes in over a quarter of a century, and that is only possible because of the disciplined approach to public spending that only a Conservative government can provide.”