The Budget: Ludlow MP welcomes Budget to cut taxes

Philip Dunne MP has welcomed the Chancellor’s Budget today, delivering tax cuts and easing pressure on people across South Shropshire. 

Thanks to the difficult decisions taken by the government, inflation has fallen from 11.1. per cent to 4.0 per cent. That has allowed the Chancellor to cut taxes for more people and businesses in South Shropshire and across the UK.

Today, the Chancellor, Jeremy Hunt, announced employees’ National Insurance will be cut again by a further 2p to 8% (and 6% for the self-employed). Combined with the 2p 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 UK income of £35,400 each will be better off by £1,827 a year. 

The Household Support Fund has been extended for those on low incomes for a further six months to help with cost of living pressures.

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 support economic growth further, the government confirmed that half a million families will gain an average of £1,260 a year towards the cost of childcare. This is thanks to a rise in the threshold for the High-Income Child Benefit Charge, which was penalising single earner households with children.

This Budget builds on the government’s work to deliver a brighter future for Britain, with long-term economic security and opportunity: where hard work is always rewarded; where ambition and aspiration are celebrated; where young people get the skills they need to succeed in life; where families are supported, where those who have worked hard all their lives have the dignity they deserve in retirement; and, with security at home and abroad.

Mr Dunne said: “The message from the Chancellor today is that the plan is working. With inflation down from 11.1 per cent to 4.0 per cent and wages growing, I am pleased the government are focussing on cutting the taxes that help to grow the economy.

“This Budget cuts taxes for hardworking business owners and families across South Shropshire, continues to drive down inflation to help with the cost of living, and supports the public services on which we all rely.

“This progress is thanks to the long-term decisions the government has taken to stick to the plan and strengthen the economy, helping to secure a brighter future for families across the country.”