Today’s budget announced a £20 billion package of tax cuts and support for workers, low income families, pensioners, businesses, the NHS and the hospitality sector. I am so pleased about the measures that are being introduced.
Budget headlines:
Reform of our tax system – ensuring those with the broadest shoulders contribute a bit more.
National Insurance cut from 10% to 8% - this is a £900 tax cut for the average worker on £35,400 a year.
Reducing the main rate of Class 4 NICs from 9% to 6%. A tax cut of around £650 for the average self-employed person on £28,000 a year.
Changes to the High income Child Benefit Charge to support families. This is estimated to support half a million families with an average gain of up to £1,260 towards the costs of raising their children.
Boosting pensions, in line with our Triple Lock, by 8.5 per cent, ensuring dignity in older age for those who have worked their entire lives.
Maintaining the 5p cut to fuel duty and freezing rates for the 14th consecutive year, keeping motoring costs down. £3.1 billion tax cut for drivers, saving the average driver around £50 a year.
Local Housing Allowance increased for the families most struggling with the cost of living. Around 1.6 million families will be £800 better off from next year.
Cuts to Capital Gains Tax on residential property sales, encouraging those who want to sell their second homes and buy to lets to make more houses available for families.
Support for the NHS
• An additional £2.45 billion next year to make progress on getting waiting lists down, boosting services and improving maternity care – and meaning that NHS funding grows in real terms from 2023-24 to 2024-25.
• Investment of £3.4 billion over three years to boost productivity with improved technology and more efficient ways of working.
Support for small businesses
• Increasing the VAT registration threshold for small businesses for the first time since 2017, raising it from £85,000 to £90,000.
• Freezing the business rates multiplier for small businesses for a fourth consecutive year. This benefits a million British businesses, meaning an independent shop not benefitting from existing reliefs, with a rateable value of £50,000, will see savings of £1,650 next year.
Freezing alcohol duty, alleviating pressure on the hospitality sector.
Introduction of a new duty on vapes, protecting young people and children from the harm of vaping.
The impact of these changes will be to:
Halve inflation.
Grow the economy.
Reduce debt.
Find out what it means for you with our tax calculator 
https://taxcuts.conservatives.com
