LAST week the Chancellor of the Exchequer unveiled his budget. There was a lot of good news in it for local residents. Importantly, the enormous budget deficit he inherited is down 40 per cent so far and record numbers of permanent jobs are being created by businesses. The cost of living is being kept under control with a freeze in fuel duty, low mortgage rates, real terms reductions in council tax and lower income tax bills.
It was a budget for so many of my constituents who have worked hard all their lives and carefully saved for retirement. The basic state pension is rising by at least 2.5 per cent every year. Tax on your savings is also abolished for the first £5,000 in income and there’s a new pensioner bond exclusively for the over 65s.
Motorists will welcome the fact that fuel duty has been frozen again and petrol prices are now 20 per cent lower than planned. There was money for potholes and flood defences.
For people in work, income tax has been cut significantly by allowing the first £10,500 of earnings to be tax free. That’s worth £800 a year for most taxpayers.
The Chancellor was able to help manufacturing companies in the Midlands and those who trade abroad. The Government will also invest more in apprenticeships creating 100,000 more next year in smaller businesses.
The cost of childcare can also prevent parents who want to work from returning to work, and so the tax free childcare account is an excellent innovation that will help families save 20 per cent on this significant outlay.
The budget is part of the long-term economic plan to give economic security to the families of Britain.
