TAKING the long-term, difficult decisions to halve inflation and strengthen the economy means the Government is now able to cut personal taxes and reward hard work across the country, writes Mark Harper.
That is why from the 6th January our cut to National Insurance – saving the average worker £450 a year – will come into force. This cuts the main rate of National Insurance by two pence to ten per cent, benefiting 27 million workers and rewarding hard work across the country.
This tax cut means a senior nurse with five years of experience will receive an annual gain of £600; a typical police officer will receive an annual gain of over £630; a typical junior doctor will receive an annual gain of over £750 and a hard-working family with two earners on the average income will be £900 better off a year.
Going further, the Government are also cutting and simplifying tax for two million of the self-employed, supporting the country’s entrepreneurs who grow the economy. Later this year, we will abolish an entire class of NICs and cut the rate of the NICs top rate from nine per cent to eight per cent for the self-employed – with an average total saving of around £350 for someone earning £28,000 a year.
Last year’s Autumn Statement also cut business taxes permanently by £11 billion a year, the biggest business tax cut in modern British history. We promised to make full expensing permanent when the economic conditions allow and have now delivered that. Making full expensing permanent enables businesses to invest for less and offset investments against their tax bills.
This tax cut would not have been possible under Labour who have refused to back our difficult decisions to halve inflation and would have no choice but to fund their green spending commitments, which would cost £28 billion a year, through tax rises.
It is right that we are responsible with public finances, paying back the support we rightly put in place during the pandemic and the energy crisis. Looking to the future, we have been clear that over time we will cut taxes in a responsible way based on fiscal rules and the position of the public finances. In light of the lower forecast for borrowing, we have started to deliver on that promise.
Contact me: [email protected] | www.markharper.org | House of Commons, London, SW1A 0AA | @Mark_J_Harper | facebook.com/mark.harper.fod