Craig Williams has welcomed today’s Spring Statement by the Chancellor of the Exchequer, stating that the UK Government’s new Tax Plan will directly aid residents of Montgomeryshire with the cost of living through £22 billion of measures.
The Chancellor has today set out a new Tax Plan that will reduce and reform taxes over the course of this Parliament, delivering the biggest cut to personal taxes in over a quarter of a century. The measures announced will help families with the cost of living, create the conditions for private sector-led growth, and sharing the proceeds of growth fairly.
Key measures within the Spring Statement include:
- Cutting Fuel Duty by 5p: A £5 billion tax cut and the largest fuel duty cut ever, saving car drivers £100, van drivers £200 and HGV drivers £1,500 this year. This will come into effect from 6pm TODAY.
- Cutting National Insurance: A £6 billion tax cut for nearly 30 million workers and worth £330 per person, meaning 70% of people will pay less tax even after the Health & Social Care Levy takes effect. You won’t pay any National Insurance on the first £12,570 you earn, raised from £9,500.
- Cutting Basic Rate of Income Tax to 19p from 2024 : A £5 billion tax cut, and the first income tax cut in 16 years. This will be worth around £175 for a typical taxpayer.
- Cutting VAT on energy saving materials like solar: A £250 million tax cut for homeowners. Now the UK has left the EU, we can revert to pre 2019 rules around energy saving subsidies – removing the 5% VAT Charge and saving approx. £1,000 on solar panel installation, then £300 annually on bills.
- 50% Business Rates Discount for retail, hospitality and leisure: Taking effect in April, saving a typical pub around £5,000 on its tax bill.
Today’s announcement already builds upon the support measures within last autumn’s Budget, including:
- Energy Price Cap, Winter Fuel Payments, Cold Weather Payments and Warm Homes discount, supports the most vulnerable households in saving on their energy bills each year.
- Investing £3 billion to improve home insulation – providing grants of up to £25,000 which will help families save £300 every year.
- Increasing the National Living Wage from April 1st by 6.6% to £9.50 per hour.
- Cutting and Freezing Alcohol duties – largest cut in duties in over half a century.
Welcoming today’s Spring Statement, Craig Williams MP, who is Parliamentary Private Secretary to the Chancellor of the Exchequer, said:
“The Chancellor’s Spring Statement announces that taxes are being cut, debt is falling, and public spending is increasing.
“Our new Tax Plan takes a principled and disciplined approach in delivering the biggest cut to personal taxes in over a quarter of a century, enabling us to lower taxes and therefore deliver a large package of support to help working families in Montgomeryshire with the cost of living.
“This includes the largest ever cut in fuel duty; a rise in the National Insurance contribution threshold worth £330 a year; and a cut in income tax worth £175 per year, on top of support measures previously announced.
“The UK Government is only able to provide today’s support because of the tough but responsible decisions we have taken to repair public finances and ensure our economy recovers strongly. This has seen the UK become the fastest growing economy in the G7 last year, with record job vacancies and unemployment back at pre-pandemic levels.
“There are of course concerns regarding inflation and rising interest rates, with rates forecast to peak at 8.7%. This, coupled with interest repayments on the UK’s debt, is why it is vital that the Government must remain responsible on public spending and finances, especially in the face of high economic uncertainty. The Treasury will therefore also establish the Cabinet Committee on Efficiency and Value for Money, which will aim to prevent £5.5 billion of public finances waste.