Britain deserves a pay rise. Those were the words delivered by the Chancellor as he presented the first all-Conservative budget in 19 years and introduced a new National Living Wage for working people.
From a one nation Government, this was a one nation Budget that has taken the necessary steps to lead us down a sound economic path for the benefit of the whole of the UK and everyone in it. This is why we are growing faster than any other major economy in the world and have been able to create 2 million more new jobs. Living standards are rising rapidly and we are delivering on crucial infrastructure. Our long term economic plan is working and this budget has shown yet again that we are backing aspiration, supporting hardworking people and setting bold ambitions for our Country.
The new National Living Wage will expect to reach £9 by 2020 and will deliver a direct pay rise for two and a half million people. Those currently on the minimum wage will see their pay rise by over a third in this Parliament – a cash increase of over £5,000 for a full time worker.
We are also continuing to cut taxes so people can keep more of what they earn. The income tax threshold will rise to £11,000 from April next year, meaning that the typical taxpayer will pay £905 less than in 2010, and the threshold at which the 40p rate is paid will also rise to £43,000. These measures are committed to keep moving us from a low wage, high tax, high welfare economy; to the higher wage, lower tax, lower welfare country that we intend to create.
On other matters the Chancellor confirmed our commitment to meet the NATO pledge to spend 2% of our national income on defence – something vitally important to our County. Whilst he also delivered a cut in Corporation Tax to ensure that we are one of the most desirable places to do business in the world, something that will help to create even more jobs and enable us to achieve our ambition for full employment.
As the Minister for Disabled People I was also glad to see that protecting the elderly, the vulnerable and disabled people remains at the heart of what we do. In the last Parliament we increased payments to the most disabled people and we will not tax or means-test disability benefits.
This was a budget that put hardworking people first, whilst protecting those most in need. It was a budget which put security first: economic security of a country that lives within its means; financial security of lower taxes and a new National Living Wage; and the national security of a country that defends itself and its values.
