In January, the Prime Minister set out his plan to halve inflation, grow the economy and reduce debt. Since then, inflation has halved, the economy has grown more than forecast and debt is on track to fall. The plan is working.
Earlier today, the Chancellor delivered his Autumn Statement for Growth, setting out tax cuts for working people, businesses and the self-employed. These are only possible because of the fiscal headroom created by the Government’s tough decisions and economic discipline over the last 12 months.
Some of the specific measures announced today include:
- Reducing the main rate of National Insurance Contributions from 12 to 10 per cent, a tax cut for 27 million working people.
- Abolishing Class 2 NICS and reducing the main rate of Class 4 NICS from 9 to 8 per cent, a tax cut for 2 million of the self-employed.
- Raising the National Living Wage to £11.44 an hour, a 9.8 per cent increase for 2.7 million workers.
- Increasing pensions by 8.5 per cent, meeting our Triple Lock commitments.
- Uprating benefits by 6.7 per cent, in line with inflation.
- Making Full Expensing permanent, reducing tax by up to 25p for every £1 companies invest in plant and machinery.
- Extending business rates relief for retail, hospitality and leisure businesses and freezing the small business multiplier for another year, protecting our small businesses and high streets.
- Freezing alcohol duty for another six months, backing our pubs, breweries and distilleries.
The past year has seen the economy turn a corner. Today’s Autumn Statement makes the most of the opportunities created by sound management and fiscal discipline. Measures to ease the burden on working people and ensure that work pays are welcome. The Chancellor’s plan will continue our path to long-term growth, unlocking investment and unleashing productivity.
