Last week, the Chancellor set out a comprehensive and ambitious plan to get the country back on its feet and tackle energy prices inflated by global costs.
I was present in the House of Commons as he announced that the Government will reverse the National Insurance increase of recent months and that the basic rate of income tax will be cut from 20% to 19% - keeping more money in hard working people’s pockets and making our tax system fairer. To give it some flavour, these changes mean someone earning £30,000 will pay £400 less tax next year.
There’s good news for businesses too. The National Insurance cut will also save nearly a million companies around £10,000 on average next year. The Government has also committed to cancel its increase of Corporation Tax. This plan is about backing business to do the thing it is supposed to do: investing in Britain and supporting livelihoods by employing hard working people on a good pay.
Most importantly, the Government has committed support to everyone with energy costs. This is expensive for the taxpayer but will cap the average household bill at around £200 per month for two whole years. And there is similar support for businesses, schools and organisations this winter. And it is on top of another £400 payment towards energy bills for all means that 8 million of the most vulnerable people Will benefit by at least £2,200 this year.
It was vital to have a plan for energy costs in place in time to give every household and business certainty ahead of the 1st of October when many turn on their heating for the winter, and I am pleased that the Government has guaranteed that.
