The last few years have not been easy. The country has faced the legacy of Covid, war in Ukraine and in the Middle East. Since the beginning of 2023, the Government have been working on five priorities. Three of them are economic: to halve inflation, grow the economy, and reduce debt.
Good progress has been made: inflation has fallen from 11.1 per cent to 4 per cent; the economy has performed better than forecast and is outperforming European neighbours; wages are rising; mortgage rates falling; and debt is on track to fall as a share of the economy.
Today’s budget shows the plan is working – and the Government is sticking to it.
The Chancellor has:
Cut National Insurance Contributions (NICs) for 27 million working people from 10 per cent to 8 per cent, meaning a tax cut of over £900 for the average worker in conjunction with the cut announced in the Autumn Statement.
Cut NICs for two million of the self-employed from 9 per cent to 6 per cent, meaning savings of £650 for the average self-employed person, taken with the cuts announced in the Autumn Statement.
Changed the High Income Child Benefit Charge to support half a million families by raising the threshold and halving the rate at which Child Benefit is withdrawn, benefiting parents by an average of £1,260.
Reduced debt, with overall debt beginning to fall next year and a forecast showing debt falling as a share of the economy.
Frozen alcohol duty, alleviating pressure on the hospitality sector.
Maintained the five pence cut to fuel duty and frozen rates for the fourteenth consecutive year, saving drivers £3.1 billion.
Cut Capital Gains Tax on residential property sales, encouraging those who want to sell their second homes and buy to lets to make more houses available for families.
Increased the VAT registration threshold for small businesses for the first time since 2017, raising it to £90,000.
Supported and reformed the NHS with £2.45 billion for next year and a new £3.4 billion productivity plan.
Introduced a new duty on vapes, protecting young people and children from the harms of vaping.
Reformed our tax system, ensuring those with the broadest shoulders contribute a bit more.
Julian Smith said, “Today the Chancellor set out a budget that will build on the progress we’ve made since Rishi Sunak became Prime Minister.
“When I look back on the turbulence facing our country back then, I’m proud of what we’ve been able to accomplish: inflation more than halved, debt falling, and the economy outperforming our European neighbours.
“We’re not there yet. But today’s announcements will help drive inflation down further, boost growth, attract investment, reward hard work, support young families, and champion small businesses.”
