Suella has welcomed many elements of the Government’s Budget. However, reflecting on the Chancellor’s announcements yesterday, Suella wants more to be done to support taxpayers in Fareham and across the country.
Inflation has fallen from 11.1 per cent to 4.0 per cent. That means the Conservative Government has been able to cut taxes for more people and businesses in Fareham.
The Government announced National Insurance will be cut again. Combined with the cut at the Autumn Statement, that is a tax cut of over £900 for the average worker earning £35,400 – giving the average earner the lowest effective personal tax rate since 1975.
It means a hard-working family with two earners on the average income of £35,400 each, in Fareham, will be better off by £1,827 a year.
The Budget also confirmed small businesses will pay less VAT and alcohol and fuel duty will be frozen, keeping costs low for businesses and drivers.
To further support economic growth, the Conservatives confirmed that half a million families will gain an average of £1,260 a year towards the cost of their childcare costs. This is thanks to a rise in the threshold for the High-Income Child Benefit Charge, rewarding hardworking parents who want to take up more work.
Yesterday’s Budget has shown that the Government’s plan for the economy is working: the economy is turning a corner and the Government has been able to afford tax cuts as part of their plan to grow the economy.
The headline announcements that Suella welcomed in yesterday’s Budget included the following measures:
- Cutting taxes for 27 million working people from April
- Cutting taxes for 2 million of the self-employed
- Support for half a million families through changes to the High Income Child Benefit Charge
- Reducing debt
- Freezing alcohol duty
- Maintaining the five pence cut to fuel duty and freeze rates
- Cutting Capital Gains Tax on residential property sales
- Supporting and reforming the NHS with £2.45 billion for next year and a new £3.4 billion productivity plan
- Launching the new UK Individual Savings Account (ISA), with a £5,000 allowance, to promote investment in UK assets and funds
Though there were many positive announcements welcomed by the Fareham MP, Suella had hoped that yesterday’s Budget would turn the tide on the highest tax burden in 70 years.
As a firm believer that the Conservatives are the party of low tax, enterprise and prosperity, Suella had hoped to see a 2p cut off the basic rate of income tax, an increase in the personal allowance and income tax thresholds raised to properly fix a tax regime that disincentivises work and endeavour. Suella also stated that more needs to be done to further support pensioners, an issue she will continue advocating for.
Commenting, Suella said:
“I welcome many elements of the Chancellor’s Budget. This Budget cuts taxes for hardworking business owners and families across Fareham, continues to drive down inflation to help with the cost of living and supports the public services we all rely on.
“With inflation down from 11.1 per cent to 4.0 per cent and wages growing, I am pleased the Government are focusing on cutting the taxes that help to grow the economy.
“However, there’s a lot more to be done to support the British taxpayer and get our economy growing. If we are serious about putting the British taxpayer first, we should have cut 2p off the basic rate of income tax and increased the personal allowance; this would help poorer households and potentially lift 20 per cent of all taxpayers out of paying tax altogether. Cutting income tax, rather than national insurance would help workers, savers and pensioners, reaching a broader spectrum of society. Pensioners, in particular, need further support—something I will keep advocating for.
“I had hoped for income tax thresholds to rise to tackle the problem of fiscal drag. Too many people earning low or mid-level salaries have been dragged into the higher tax brackets because of the frozen tax thresholds, extended until 2027. It is regrettable that we did not take the chance today to remedy this: teachers, nurses, and police officers are paying 40 per cent tax in a way that was never intended.
“Despite my views, there’s a lot to be pleased about in this Budget: cutting taxes for 27 million working people from April, cutting taxes for 2 million of the self-employed, supporting half a million families through changes to the High Income Child Benefit Charge, reducing debt, freezing alcohol duty, maintaining the five pence cut to fuel duty and freeze rates, cutting Capital Gains Tax on residential property sales, supporting and reforming the NHS with £2.45 billion for next year and a new £3.4 billion productivity plan, and launching the new UK ISA, with a £5,000 allowance, to promote investment in UK assets and funds.”