Craig Williams, MP for Montgomeryshire, has welcomed today’s Budget Statement Chancellor of the Exchequer, which reinforces the Government’s plan for growth and rewards workers.
Today’s Budget confirms that the Government’s plan to strengthen the UK economy is working, with debt forecast to fall for the next five years; inflation having been more than halved since the beginning of 2023; and the Office of Budget Responsibility (OBR) confirming that the economy grew last year despite previous predictions.
As a result of this, the Chancellor has today been to proceed with planned tax cuts which will reward work and further grow the economy.
Headline announcements in today’s Budget Statement include:
- Cutting taxes for 27 million working people from April by again cutting the main rate of employee National Insurance Contributions (NICs) from 10% to 8% - giving the average worker a tax cut of over £900 and the lowest effective personal tax rate since 1975.
- Cutting taxes for 2 million self-employed workers, by cutting the main rate of Class 4 NICs from 9% to 6% - combined with tax-cuts announced in last year’s Autumn Statement, this will save the average self-employed worker £650.
- Support half a million families through changes to the High-Income Child Benefit Charge by raising the threshold and halving the rate at which Child Benefit is withdrawn, as well as moving towards a household-based system.
- Maintain the 5p cut to fuel duty and freezing rates for the 14th consecutive year – a £3.1billion tax cut for drivers.
- Freeze alcohol duty to alleviate pressure on the hospitality sector.
- Support and reform the NHS in England with £2.45 billion for next year and a new £3.4 billion productivity plan, helping to cut waiting times and free up clinicians time to focus more on patients within Shrewsbury and Telford Hospitals.
- Cut Capital Gains Tax on residential property sales.
- Increase the VAT registration threshold for small businesses from £85,000 to £90,000
- Reform our tax system, ensuring those with the broadest shoulders contribute a bit more.
- Introduce a new duty on vapes, protecting young people and children from the harm of vaping.
In addition, the Chancellor has also allocated £5 million for an ‘Agri-food Launchpad’ in Mid & North Wales, which will support business-led projects on vital agriculture issues, helping to grow innovation clusters across Montgomeryshire and Mid Wales.
Welcoming the Chancellor’s Budget Statement, Craig Williams MP said:
“Today’s Budget Statement is very welcome news for Montgomeryshire residents and businesses, allowing us to focus on the recovery and growth of the economy, whilst also rewarding hard-working families.
“I am also very pleased that Mid Wales will be home to a new Agri-food Launchpad, with £5 million being made available to support businesses and research & development focussing on food and agriculture – reaffirming our position at the heart of British food and farming.
“The last few years have not been easy for the UK economy. We have faced the legacy of Covid, and war in Ukraine and the Middle East. These challenges have made life tough for us all.
“Since the beginning of 2023, the UK Government has been working on three main economic priorities; to halve inflation, grow the economy and reduce debt. We are making good progress. Inflation has fallen from 11.1% to 4%; the economy has performed better than forecast; wages are rising; mortgage rates are starting to come down; the economy has outperformed European neighbours; and debt is on track to fall as a share of the economy.
“The Chancellor’s Budget reinforces that this economic plan is working, allowing us to focus on further strengthening our economy, reducing debt, cutting taxes and rewarding hard work.”
