The Chancellor Jeremy Hunt today announced the biggest package of tax cuts since the 1980s as he set out the Government's fiscal plan for the next year.
Today’s Autumn Statement marks a major moment as the Government changes gear and focuses on how to drive growth in the decade ahead, with the biggest package of tax cuts to be implemented at a fiscal event since the 1980s, while getting borrowing lower and inflation falling. This means combining the biggest tax cut on investment in modern British history with the largest ever cut to workers National Insurance – a £20 billion package of annual tax cuts.
The Autumn Statement for Growth will:
• Cut taxes for 27 million working people from January by cutting the main rate of National Insurance Contributions from 12 per cent to 10 per cent. For the average worker earning £35,000 a year, that means a £450 tax cut
• Cut and simplify tax for 2 million of the self-employed, abolishing an entire class of NICs and cutting the rate of the NICs top rate from 9 per cent to 8 per cent – a with an average total saving of around £350 for someone earning £28,000 a year
• Cut business taxes by £11 billion – the biggest business tax cut in modern British history by permanently enabling businesses to invest for less and offset investments against their tax bills.
• Cut business rates by freezing the small business multiplier yet again, saving an average shop £1,650, and extending the Retail Hospitality and Leisure Relief for a year.
• Business rate relief extended – saving average independent shop £20,000 a year and average pub £12,800 a year
• Boost the National Living Wage to record levels: £11.44 an hour. That is a 9.8 per cent increase, benefiting 2.7 million workers
• Help the most vulnerable with an average income boost of £800. 1.6 million of the families most struggling with the cost of living will have their Local Housing Allowance increased.
• Boost pensions, in line with our Triple Lock, by 8.5 per cent – ensuring dignity in older age for those who have worked their entire lives. The basic State Pension will be £3,750 higher than in 2010.
• Freeze alcohol duty, alleviating pressure on the hospitality sector
• Increase all working age benefits in full by 6.7 per cent, boosting benefit payments for around 5.5 million households who receive Universal Credit – by an average of £470 a year.
• Get people into work by reforming welfare and toughening up work requirements
• Benefits to stop for those refusing to seek work – those out of work for 18 months will be offered a mandatory work placement to increase skills. If they refuse, their benefits will end.
• £7 million to organisations including the Holocause Education Trust to fight antisemitism
• £50 million to increase apprentices
During his budget speech, the Chancellor also confirmed that the Government has met its inflation target – which is set to fall further to 2.8%. Further to this, Debt is falling and the Government is meeting its debt targets
