Local MP, Dame Caroline Dinenage, has welcomed the news today that households will be further supported with cost of living pressures over the coming months.
Chancellor of the Exchequer, Kwasi Kwarteng, announced a new Growth Plan for the UK to boost economic growth by cutting taxes for families and businesses. The Government’s Plan aims to liberate the private sector by boosting business opportunities and slashing red-tape to increase investment, skilled employment, quality infrastructure, home ownership and enterprise across the UK. This puts the emphasis back on economic growth to deliver higher wages and investment.
This brings the total amount of cost of living support to £60 billion for the six months from October. This is on top of the previously announced Energy Price Guarantee, that will limit household energy bills to £2500 – cutting everyone’s energy bills by an estimated £1,400, as well as the Energy Bill Relief Scheme which will reduce wholesale energy costs for all UK businesses, charities and the public sector.
The Chancellor also announced:
- Cut basic rate of income tax to 19p and removing the 45p higher rate tax.
- Cut Stamp Duty to £250k and for first time buyers £425k. In addition to this, the value of the property on which first-time buyers can claim relief, will be raised from £500k to £625k. These steps will mean 200,000 more people will be taken out of paying stamp duty altogether.
- Corporation Tax Rises will be cancelled. The rate of Corporation Tax will remain at 19%.
- More than 40 new Investment Zones, providing tax incentive and liberalising planning to provide localised support
- An 18 month transitional measure for wine duty. The government will also extend draught relief to cover smaller kegs of 20 litres and above.
Earlier this week the Chancellor announced that the planned National Insurance rise will be cancelled alongside the new Health and Social Care Levy.
Commenting Caroline said:
“While the support already announced has been absolutely vital to my constituents, the unprecedented global situation demands unprecedented Government action.
It’s important to remember that tax is not simply a way to raise revenue, tax regimes across world incentivise economic behaviour and stimulate growth. This timely Growth Plan will ensure that individuals are further supported over the coming months while laying foundations for the future.
I am particularly pleased that the Government plans to extend the draught relief to cover smaller kegs of 20 litres and above to help smaller breweries. This will mean a great deal to Gosport’s microbreweries and is something I have been lobbying for.”
The Chancellor of the Exchequer, Kwasi Kwarteng said to MPs in the House of Commons:
“Growth is not as high as it should be. This has made it harder to pay for public services, requiring taxes to rise. In turn, higher taxes on capital and labour have lowered returns on investment and work, reducing economic incentives and hampering growth still further.
We are determined to break that cycle. We need a new approach for a new era, focused on growth.
Our aim, over the medium term, is to reach a trend rate of growth of 2.5%. And our plan is to expand the supply side of the economy through tax incentives and reform. That is how we will deliver higher wages, greater opportunities, and crucially, fund public services, now and into the future.”
