Today, the Chancellor announced his new Tax Plan to reduce and reform taxes – tackling the cost of living and incentivising private sector-led growth.
People in Loughborough will benefit from the Government’s plan to deliver on the biggest cut to personal taxes in over a quarter of a century.
The IMF said the UK had the fastest growing economy in the G7 last year – today’s announcement from the 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.
Loughborough MP Jane Hunt has welcomed the measures in the new Tax Plan. The plan will reduce and reform taxes by:
- Slashing fuel duty by 5p for twelve months, delivering a £5 billion tax cut for drivers. Together with the fuel duty freeze, this will save car drivers £100, van drivers £200, and HGV drivers £1,500 this year, coming into effect immediately from 6pm this evening, across the United Kingdom.
- Rising the National Insurance personal threshold from £9,500 to £12,570 from July, 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.
- Helping people keep more of what they earn by cutting the basic rate of income tax to 19 pence in 2024, delivering 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 will be worth around £175 for a typical taxpayer.
- Raising 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 – that’s a new £1,000 tax cut for half a million small businesses.
- Doubling the existing Household Support Fund to £1 billion, delivering an additional £500 million to the Household Support Fund. This helps 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.
Shortly after the Chancellor delivered his statement, Jane said:
“The situation in Ukraine reminds us that the United Kingdom’s security and ability to be a force of good in the world is in large part based on the strength of our economy.
“That is why this Government is going further to 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 working people in Loughborough.
“This Tax Plan delivers the biggest cut to personal taxes in over a quarter of a century, which will mean residents in Loughborough will be able to keep more of what they earn.”
