Four-months on from the Autumn Statement in November 2023, the Chancellor Jeremy Hunt delivered his latest budget to Parliament with more tax cuts and support for families. With pensioners already benefitting from the triple-lock which will see pensions increase by 8.5% in April, the budget gave a welcome boost to people across our area. On top of last years 10.1% increase this means the pension over two-years has risen by more than £1,800.
For families with young children, the recent change to free childcare entitlement is making a real difference. Lots of families have been in touch with me over recent years about Child Benefit which sees currently reduces once one parent earns more than £50,000. It struck the wrong note that two parents earning £49,000 a year receive full Child Benefit, but a household with a single earner on just £50,000 starts losing their Child Benefit. It was therefore really welcome news to see the Chancellor increase the threshold to £60,000.
It is important that hard-working families across Stockport get to keep as much of their hard-earned cash as possible. That is why the Government reduced the tax burden by a further 2% by cutting National Insurance Contributions and putting an extra £900 in the pockets of the average worker earning £35,400.
I know this tax cut will be welcome for my constituents at a time when bills are going up and household budgets are being squeezed. But it is not only employed workers who will benefit from this cut with two-million self-employed workers seeing their National Insurance Contributions reduced from 9% to 6% worth £650 for an average self-employed person earning £28,000 a year.
Whether it’s High Street pubs or independent businesses, we all benefit when they thrive, so I was pleased to see the change to VAT thresholds helping businesses with a reduction in a tax on business. This is alongside support for the hospitality sector with a further freeze to alcohol duty, which will give a further boost to pubs and restaurants.
Whilst the last few years haven’t been easy for the British economy with the legacy of Covid and war in Ukraine impacting on our energy prices the budget confirmed that the economy is strengthening, and we are on track to have debt falling. I was pleased to see the Government continuing to deliver a brighter future for the country including right here in Cheadle constituency and Stockport more widely.
