Today, the Chancellor announced his new Tax Plan to reduce and reform taxes across the UK, to tackle the cost of living and incentivising growth for businesses.
People in Basingstoke will benefit from the Conservative Government’s plan to deliver on the biggest cut to personal taxes in over a quarter of a century.
Responding to the Statement, Maria said:
“I hugely welcome this Government’s plans to further strengthen our economy, publishing a new Tax Plan to reduce and reform taxes – including cutting fuel duty, cutting the basic rate of Income Tax and cutting National Insurance for 30 million working people – meaning people can keep more of what they earn. This Tax Plan delivers the biggest cut to personal taxes in over a quarter of a century – simplifying our system in the long-term whilst we deliver immediate relief for cost-of-living pressures.”
The International Monetary Fund (IMF) said the UK had the fastest growing economy in the G7 last year – today’s announcement from Chancellor Rishi Sunak, seeks to remain responsible on public spending and public finances to protect and increase this growth whilst helping families with the cost of living.
From July, no National Insurance will be paid on earnings below £12570, saving workers £330, delivering the largest increase in a starting personal tax threshold in British history. This is equivalent to a £6 billion tax cut for nearly 30 million workers and worth over £330 a year starting in July, across the entire United Kingdom. This is the largest single personal tax cut in a decade.
The basic rate of income tax will also be cut to 19 pence in 2024, to help people keep more of their earnings. This delivers a tax cut worth £5 billion for over 30 million workers, pensioners and savers – only the second income tax cut in two decades and the first income tax cut for 16 years. This equates to around £175 for a typical taxpayer.
The Chancellor also announced plans to raise the employment allowance to £5,000, delivering a £1,000 tax cut for small businesses. The Employment Allowance cuts employers’ national insurance tax bills by increasing the employment allowance even further to £5,000 from April –a new tax cut of £1,000 for half a million small businesses.
The Government’s existing Household Support Fund will also be doubled to £1 billion, delivering an additional £500 million to the Household Support Fund to help the most vulnerable families with the cost of living. The fund is distributed through local authorities in England, who have discretion over exactly how the funding is used. This is expected to benefit 3 to 4 million vulnerable households.
