As we are all aware, rising global tensions have had a tremendous impact on the British economy. We have faced covid, and its aftermath, the war in Ukraine and the issues in the Middle East. These challenges have made life tough for people in Britain.
3 of the Prime Minister’s 5 top priorities are economic.
- Halve inflation
- Grow the economy
- Reduce debt
So far, we have made great progress. Inflation has fallen from 11% to 4%, the economy has performed better than forecast, wages are rising, mortgages are starting to come down, the economy has outperformed European neighbours and debts is on track to fall as a share of the economy.
The Spring Budget announced on 6th March has shown that this Government is dedicated to sticking to the plan. Below I have summarised what was said, and how this will benefit people living and working in Carshalton and Wallington.
Cutting Taxes and Rewarding Hard Work:
- National Insurance has been cut even further, down to 8%, saving the average worker on £35,400 over £900 a year. This will mean the personal tax rate for an average full-time employee was 23.6% in 2010 and will fall to 19.65% by the end of the forecast in 2028/29. This gives the average full-time worker in the UK the lowest effective personal tax rate since 1975 (which is lower than any G7 country)
- National Living Wage take home will be 35% greater than it was in 2010.
Supporting Parents:
- Having raised my concerns about the High-Income Child Benefit Charge, I was especially pleased to hear that changes are being made. The threshold is being raised from 50,000 to 60,000, as well as halving the rate so that it is not paid in full until you earn over £80,000. This is estimated to support half a million families with an average gain of up to £1,260 towards the cost of raising their children.
- As of April, we are ending the unfairness for single earner families by moving to a household system.
Cost of Living:
- We are maintaining the 5p cut to fuel duty and freezing rates for the 14th consecutive year, helping keep motoring costs down, equating to a tax cut of around £3.1 billion for drivers.
- Alcohol duty freeze is being extended.
- The Household Support Fund to support households with the cost of living is also being extended. An extra £500 million is being invested to allow the Household Support Fund to be extended up until September.
The NHS:
- We have already provided record funding to the NHS to reduce backlogs, and now we are backing the NHS with additional £6 million – this is going to be comprised in two ways:
- An additional £2.45 billion next year to make progress on getting waiting lists down, boost everyday services and improve maternity care.
- Investment of £3.4 billion over three years to boost productivity with improved technology and more efficient ways of working.
- Our health funding has been backed by NHS England Chief Executive Amanda Pritchard: ‘From record numbers of cancer checks to more young people than ever before receiving help with their mental health, NHS staff are delivering more and more for patients every year. Today’s announcement for nearly £6bn shows the Government continues to back the NHS and the £2.45bn of extra funding for next year ensures we have the support we need to make continued progress on our key priorities for patients’.
Clarifications:
- Cutting NIC does not mean any less money for pensions or the NHS. NIC receipts do not determine the NHS budget or benefits such as pensions. Those decisions are taken entirely separately in the context of spending reviews and cuts to NICs will not impact the Governments commitment to supporting the NHS and pensioners.
