The situation in Ukraine continues to cast a shadow over the world. We are doing our part to help and this ability to be a force for good in the world is partly because of the strength of our economy.
Nevertheless, the sanctions on Russia are not cost free for people in Peterborough, with the biggest impact on working families. This was on the Chancellor’s mind when he stood up to give the Spring Statement.
In order to protect our economic recovery and help families with the cost of living, he is delivering a new Tax Plan. We want to help those struggling with rising costs and energy bills.
The IMF said the UK had the fastest growing economy in the G7 last year. This has allowed the Chancellor to cut taxes in his statement, while debt continues to fall again and public spending increases. Peterborough will benefit from the biggest cut to personal taxes in over a quarter of a century.
Among the policies announced were:
- 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.
- Raising 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.
- 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. 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.
- 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. It is expected to benefit 3 to 4 million vulnerable households.
I’m pleased this Government is going further to strengthen our economy and delighted by the Chancellor’s Tax Plan.
Measures like cutting fuel duty, cutting the basic rate of Income Tax and cutting National Insurance for working people are exactly right.
This will help people in our city keep more of what they earn.
It also simplifies our system in the long term, while we deliver immediate relief for cost of living pressures.
The Chancellor of the Exchequer has got it right again. The war in Ukraine means the economic outlook won’t be easy, but we have a Government that’s on your side.