Stuart Anderson MP has welcomed a set of measures to support hard-working people and their families, reducing tax payments for millions of hard-working people and their families. The Chancellor Jeremy Hunt set out a further series of tax changes as he delivered his Spring Budget. It includes a further 1% cut to National Insurance Contributions (NICS) from ten per cent to eight per cent for 27 million workers, including 2.5 million in the West Midlands. It is worth £450 for the average worker and, when combined with the previous cut at the Autumn Statement, is a tax cut of £900 - giving the average earner the lowest effective personal tax rate since 1975. The main rate of NICs for the self-employed will also be reduced from 8% to 6% from April, helping 2 million self-employed people and saving them £650 when combined with the 1p cut announced at Autumn Statement.
Stuart also welcomed the decision to maintain the five pence cut to fuel duty for another twelve months, cancelling the planned 13% increase - a saving for all drivers of overall £3.1 billion and £250 for the average car driver since the cut was introduced in 2022. The six-month alcohol duty freeze announced at the Autumn Statement will also be extended until February 2025, saving consumers 2p on a pint of beer, 1p on a pint of cider, 10p on a bottle of wine, and 33p on a bottle of spirit. This will benefit 38,000 pubs across the UK, including 6,385 in the West Midlands. The Government also announced more than £1 billion in extra tax relief for creative industries over the next five years. Orchestras, museums, galleries, and theatres such as Wolverhampton’s Grand Theatre will benefit from a permanent 45% tax relief for touring productions and 40% relief for non-touring productions.
To help small businesses access the finance they need, Stuart welcomed an extension to the Recovery Loan Scheme with £200 million. It is being renamed the Growth Guarantee Scheme and will help an extra 11,000 SMEs. The Government is increasing the VAT registration threshold from £85,000 to £90,000. This will see 28,000 SMEs taken out of paying VAT. The threshold will be the highest across the EU and the OECD alongside Switzerland. Stuart also welcomed £15 million for culture and heritage projects across the West Midlands, in addition to £5 million for the Platinum Jubilee Village Halls Fund, to support renovations at village halls.
Stuart additionally welcomed the move to raise the threshold at which Child Benefit is removed, meaning no one earning under £60,000 will pay. 170,000 families will be taken out of paying it altogether. This will benefit nearly half a million families, saving an average of £1,300 next year. By April 2026, it will be based on household income rather than individual earnings. The Chancellor is also doubling the repayment period for Universal Credit advanced loans from 12 months to 24 months, helping to make repayments more manageable. In addition, the Household Support Fund will continue for six months until September 2024 - with an extra £500 million for local authorities to help vulnerable families with the cost of essentials. Meanwhile, the £90 charge for Debt Relief Orders will be abolished, so households struggling with problem debts get the help they need.
Stuart also welcomed further support for public services, with a £2.5 billion day-to-day funding boost and £3.4 billion to drive productivity in the NHS. Meanwhile, £75 million will be invested in roll out hotspot policing, piloted in the West Midlands, and £230 million for technology in the police.
Stuart Anderson MP said: “As evidenced by this Budget, the Government is taking long-term action to reduce the tax burden for millions of hard-working people and their families. The reforms announced by the Chancellor will enable workers to keep more of the money they earn while improving access to childcare, with changes to Child Benefit saving families an average of £1,300 next year. Freezing alcohol duty will support up to 6,300 venues in the West Midlands, while 28,000 small businesses across the country will be taken out of paying VAT altogether. Together with the freeze on fuel duty, this will help to drive economic growth across the country and benefit hard-working families in areas such as Wolverhampton.”
The Chancellor of the Exchequer Jeremy Hunt MP said: “Because the Conservatives are sticking to the plan with the economy inflation is down from 11.1 per cent to 4.0 per cent, meaning we can cut taxes and put more money in people’s pockets to grow the economy. Our Budget cuts taxes to reward work, supports small businesses and helps more parents with the cost of childcare to grow the economy and fund public services.