Like many countries around the world, the UK has faced profound economic challenges caused by the twin effects of Covid-19 and Putin’s illegal invasion of Ukraine causing supply issues, increasing inflation and energy costs. These issues have led to high inflation and interest rates across many of the world’s major economies.
Against a difficult backdrop, the UK is back on track. Inflation has halved, the economy has recovered more quickly from the pandemic than first thought, and debt is on track to fall. This has delivered much-needed stability so we are now able to focus on the long-term decisions required to strengthen our economy, drive growth in the years ahead and allow the Government to deliver tax cuts for millions of people.
Last week, the Chancellor unveiled the Government’s Autumn Statement in the House of Commons, announcing the biggest tax cuts for working people and British business since the 1980s to get Britain growing.
This will see taxes cut for 27 million working people, helping people keep more of their hard-earned money. The government will cut National Insurance by 2% from January. For the average worker earning £35,000 a year, that delivers a much needed £450 tax cut. We will be passing the legislation to enable this on Thursday.
Tax will also be cut and simplified for 2 million of the self-employed, again through cuts to National Insurance.
In addition to tax cuts, the National Living Wage will be increased to record levels.
For pensioners, in line with our Triple Lock, pensions will be increased by 8.5 per cent in April. In addition we will also provide targeted support for those struggling with energy costs, through schemes such as the Warm Home Discount and the Winter Fuel and Cold Weather payments.
The most vulnerable who are struggling the most with the cost of living will see their Local Housing Allowance increase.
Also the government is increasing all working age benefits by 6.7 per cent.
There are a wide range of tax cuts for businesses, both large and small.
I welcome the measures set out in the Autumn Statement which lead the way to achieving long-term, sustainable growth, with a wide ranging package of tax cuts, while getting borrowing lower and reducing inflation.
These actions are another step forward in tackling the long-term challenges facing the UK, so we can build a more dynamic economy that delivers prosperity across the country and delivers the change the country needs.
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