Robbie Moore MP has praised support measures announced in the Spring Statement to help with the cost of living. This includes cuts to fuel duty and a new ‘Tax Plan’ which will deliver the biggest net cut to personal taxes in over a quarter of a century.
Measures introduced by the Chancellor today include:
Slashing fuel duty by 5p for twelve months, delivering a £5 billion tax cut for drivers. Together with the fuel duty freeze, this will save car drivers £100, van drivers £200, and HGV drivers £1,500 this year, coming into effect immediately from 6pm this evening, across the United Kingdom.
Rising the National Insurance personal threshold from £9,500 to £12,570 from July, delivering the largest increase in a starting personal tax threshold in British history. This is equivalent to a £6 billion tax cut for nearly 30 million workers and worth over £330 a year starting in July, across the entire United Kingdom. This is the largest single personal tax cut in a decade.
Helping people keep more of what they earn by cutting the basic rate of income tax to 19 pence in 2024, delivering a tax cut worth £5 billion for over 30 million workers, pensioners and savers – only the second income tax cut in two decades and the first income tax cut for 16 years. This will be worth around £175 for a typical taxpayer.
Raising the employment allowance to £5,000, delivering a £1,000 tax cut for small businesses. The Employment Allowance cuts employers’ national insurance tax bills by increasing the employment allowance even further to £5,000 from April – that’s a new £1,000 tax cut for half a million small businesses.
Doubling the existing Household Support Fund to £1 billion, delivering an additional £500 million to the Household Support Fund. This helps the most vulnerable families with the cost of living. The fund is distributed through local authorities in England, who have discretion over exactly how the funding is used. This is expected to benefit 3 to 4 million vulnerable households.
Robbie Moore MP said: “We cannot deny that factors such as the increase in the energy price cap by Ofgem and the War in Ukraine are causing real struggles. It is therefore right that the Chancellor has acted to remedy some of the pressures people are facing.
Motorists have been facing drastic rises in fuel costs, which is why I signed a letter to The Chancellor calling for a cut to fuel duty. I am glad that he has listened to these calls by cutting fuel duty by 5p.
Likewise, I really welcome the rise in the National Insurance Threshold which will mean that people will not pay NI on the first £12,750 they earn, a predicted saving of £330 to many hard working people.
I strongly believe that people should be able to keep more of the money they earn. I therefore welcome the Government’s ‘Tax Plan’ which will deliver the biggest tax cut in over 25 years, which includes cuts to both income tax and national insurance.”
Chancellor of the Exchequer Rishi Sunak said: “It is only because this Conservative Government is taking the tough but responsible decisions that we can announce taxes are being cut and debt is falling.
Today’s new Tax Plan will help families with the cost of living, create the conditions for private sector-led growth, and share the proceeds of growth fairly.
We are delivering the biggest net cut to personal taxes in over a quarter of a century, and that is only possible because of the disciplined approach to public spending that only a Conservative government can provide.”
