Today at the Spring Statement, the Chancellor outlined his Tax Plan - cutting taxes for businesses and families, supporting the most vulnerable, and creating the conditions for private sector-led growth.
Here is what the Chancellor’s announcement means for local residents and businesses in Esher and Walton:
- Fuel Duty has been cut by 5p per litre for the next 12 months, starting today. My colleagues the Chancellor and the Business Secretary have written to major retailers and suppliers to see this cut reflected quickly in prices at the pump.
- The National Insurance Contributions (NICs) threshold will be increased to £12,570 in July, resulting in a NICs cut for 30 million people across the UK – and keeping a manifesto promise to make the NIC and Income Tax personal allowance thresholds equal.
- The Basic Rate of Income Tax will be cut to 19p from 2024 – the first income tax cut for 16 years, reducing taxes for 30 million workers, savers, and pensioners.
- The Household Support Fund – which helps local councils support vulnerable people in our area – will be doubled to £1 billion.
Businesses will benefit from immediate tax cuts and support with investment and innovation, with further cuts announced for the Autumn Budget:
- A 50% business rates discount for retail, leisure and hospitality businesses worth up to £110,000 in April, resulting in a £5,000 tax cut for the typical pub.
- Business employment taxes have been cut, with the Employment Allowance raised to £5,000. The Federation of Small Businesses has already welcomed this change.
- Two new ‘Help to Grow’ Schemes – Help to Grow: Management and Help to Grow: Digital, offering government-subsidised management training and 50% discounts for businesses purchasing new digital software up to £5,000.
You can read more on this and the Chancellor’s full announcement here.