MALVERN MP Harriet Baldwin has welcomed the chancellor’s Spring budget which plans to reduce national insurance payments by two per cent, reform child tax credit thresholds and place freezes on fuel and alcohol duties.
Chancellor, Jeremy Hunt announced the changes today (Wednesday, March 6) which could save higher earning workers hundreds of pounds a year and slightly ease tax burdens for certain businesses.
For those earning less than the average salary, their realistic savings as a result of the national insurance reductions will be a lot lower than the chancellor’s suggestion of a £900 saving for the average person.
Harriet Baldwin lobbied for changes to the child benefit regime and the treasury will raise the threshold from £50,000 a year to £60,000, simplifying the previously confusing and unfair system. Some parents will be over £1000 better off as a result.
In addition to a tax increase on tobacco a new duty was proposed on vapes, protecting young people and children from the harm of vaping.
The Household Support Fund, which has provided important financial support to local people through agencies like Citizens Advice, will be extended for six months.
Harriett said: “Every working person will be able to benefit from a second tax cut this year with a total of a four per cent reduction in National Insurance meaning that working people will take home more of their hard-earned pay.
“I am pleased to see the welcome changes in child benefit thresholds making the system fairer and encouraging more workers to take on promotions and additional hours of work.
“Local drivers will be relieved that 5p off fuel is in place for another year making life easier for motorists.
“The economic forecasts show that inflation will continue to fall from the peak of 11 per cent last year to within its two per cent target later this year.
“This was a strong and confident budget to reward working people and sticks to the plan to deliver long-term growth.”
While the Local Government Association (LGA) also welcomed the extension of the Household Support Fund, they have called into question how successful the budget will be with regards to improving public services.
“It is disappointing that the Government has not announced measures to adequately fund the local services people rely on every day.
“Councils continue to transform services but, given that core spending power in 2024/25 has been cut by 23.3 per cent in real terms compared to 2010/11, it is unsustainable to expect them to keep doing more for less in the face of unprecedented cost and demand pressures,” said councillor Shaun Davies, chair of the LGA.
