Local MP Nigel Huddleston has welcomed the Spring Budget announced by the Chancellor, which included a package of measures to grow the economy, reduce debt and continue to reduce inflation. In his capacity as Financial Secretary to the Treasury, Nigel has been involved in developing many of the measures announced in the Budget and therefore stood alongside the Chancellor outside the door of No 11 Downing Street as the Chancellor held up the red box in a traditional pre-budget speech line up.
It is a budget that prioritises long-term growth, reducing inflation, fiscal responsibility focusing on reducing the tax burden for millions of workers and incentivising business investment.
- The Government is reducing employee National Insurance by a further two percent, to a rate at 8% from the 6th of April for 27 million workers. Two million self-employed also get a second tax cut through a further reduction in the NICs main rate from 8% to 6%. The effect of these personal tax cuts is the equivalent of 200,000 more full time workers joining the labour market. When it is responsible and when it can be achieved without compromising high quality public services, we will continue to cut NICs, making work pay.
- When the Prime Minister entered office, inflation was at 11%, now it is at 4% - more than meeting the pledge to halve inflation last year. OBR forecasts indicate that inflation will fall below the 2% target in just a few months' time, but the battle against inflation is not yet over. The Chancellor therefore announced that the Household Support Fund, due to end at the end of March, will continue at its current levels for a further six months.
- By raising the child benefit threshold to £60,000 and halving the rate at which it is repaid, half a million families will be supported through changes to the High-Income Benefit Charge, benefiting parents by an average of £1,260. The Government will also consult on moving the High-Income Child Benefit Charge to a household-based system, ending the unfairness on single-earner families by April 2026.
- The Chancellor announced £3.45 billion funding for the NHS productivity plan.
- Among a range of measures announced by the Chancellor to ensure that the UK remains the most attractive tax regime of any large European or G7 country, the Government will reduce the administrative and financial impact of VAT by increasing the VAT registration threshold from £85,000 to £90,000 from the 1st of April. This is the first time the threshold has been increased since 2017 and will result in 28,000 SMEs being taken out of VAT registration altogether.
- Alcohol duty frozen to alleviate pressure on the hospitality sector.
- Maintain the five pence cut to fuel duty.
- Cut Capital Gains Tax on residential property sales.
- Abolishing non-dom status.
Commenting upon the budget, Nigel Huddleston MP said:
“In my role as Financial Secretary to the Treasury, I was delighted to join the Chancellor outside the door of Downing Street and then be in the Chamber to see the him deliver the Spring Budget we have been working on. It is a budget that prioritises long-term growth and fiscal responsibility focusing on reducing the tax burden for millions of workers and incentivising business investment.
I know that the announcements on further cuts in National Insurance contributions and changes to the high income benefit charge will be particularly pleasing for my constituents in Worcestershire, and I look forward to working alongside the Chancellor and my ministerial colleagues to deliver upon our promises to further cut taxes and generate long term economic growth.”
The full Budget can be found through this link: Spring Budget 2024 (HTML) - GOV.UK (www.gov.uk)
The Chancellor’s speech is also available on Spring Budget 2024 speech - GOV.UK (www.gov.uk)
