Today the Chancellor announced the Spring Budget which is a prudent and responsible budget for long-term growth, setting out the Government’s plan to grow the economy and build a brighter future.
Because we stuck to our plan and more than halved inflation, we have been able to cut taxes for 27 million working people, saving the average worker on £35,000 up to £450 a year in the Autumn Statement. In the Spring Budget today the Chancellor set out our long-term plan to boost growth by unlocking investment, getting more people back into work, and reforming our public services.
Today’s Budget will cut the main rate of employee National Insurance by another 2 per cent from ten to eight per cent. The Autumn Statement and Budget taken together have delivered National Insurance cuts benefiting the average worker earning £35,400 by over £900 giving them the lowest effective personal tax rate since 1975.
We are continuing to invest in public services, backing the NHS with investment of £6billion over three years to boost productivity. The NHS will receive an additional £2.45 billion next year to make progress on getting waiting lists down, boost everyday services and improve maternity care – meaning that NHS funding will grow in real terms from 2023-24 to 2024-25. Investment of £3.4 billion over the next three years will be made to boost productivity with improved technology and efficient ways of working.
We also continue to support families by changes to the High-Income Child Benefit Charge, raising the threshold for the Charge from £50,000 to £60,000 as well as halving the rate so that it is not paid in full until you earn over £80,000. This is estimated to support half a million families with an average gain of up to £1,260 towards the cost of raising their children.
In contrast, Labour continues to stick to their dangerous 2030 decarbonisation promise, which they have costed at £28 billion a year but they cannot say how they would fund it, meaning higher taxes for hardworking families and taking us back to square one on the economy.
