Meriden MP, Caroline Spelman, today welcomed a Budget that puts the next generation first – a Budget to make Britain and Meriden constituency fit for the future.
Through stronger leadership and the hard work and determination of the British people, the economy remains strong and is the fastest growing in Europe. However, worldwide economic uncertainty and the stalling financial markets of our trading partners in East Asia continue to pose significant threats tour economic security.
Britain is well prepared to handle this challenge, but only if we act now so we don’t pay later. That’s why the Budget will continue to securing UK public finances, deliver robust public services and cut taxes for working people, small business and independent enterprise.
Through these measures hard working people will be able to keep more of the money they earn and 1.3 million of the lowest paid workers will pay no tax at all. A fairer funding formula for local schools will enable the Government to deliver real reforms to failing schools and new investment in homes and infrastructure will deliver social mobility and allow communities to thrive.
This Budget put the next generation first by:
· Cutting taxes for working people so they can keep more of the money they earn. From April next year the tax free personal allowance will rise to £11,500, a tax cut for 31 million people that means a typical basic rate taxpayer will be paying over £1,000 less income tax then when we came into government and 1.3 million of the lowest paid works will pay no tax at all. The higher rate threshold will also increase to £45,000, allowing many teachers nurses and civil servants to earn more before they pay tax.
· Freezing fuel duty to help household budgets and support small firms. We have frozen fuel duty for the sixth year in a row, a saving of £75 a year to the average driver and £270 a year to a small business with a van. We’re also freezing beer and cider duty to back British pubs.
· Improving our schools so our children get the best start in life. We’re providing extra money so every school in England becomes an academy and we are going to put a new sugar levy on the soft drinks industry so they reduce the sugar content of their products to tackle childhood obesity. The money raised will be used to double sports funding in primary schools and fund longer school days in secondary schools that offer their pupils a wider range of activities, including extra sport.
· Introducing a new Lifetime ISA to help the next generation to save. We know people like ISAs because they are simple so we’re going to increase the ISA limit from just over £15,000 to £20,000 for everyone. For those under 40, many of whom haven’t had such a good deal from pensions, we’re going to introduce a completely new Lifetime ISA. You won’t have to choose between saving for your first home, or saving for your retirement – the government is going to give you money to do both. For every £4 saved, the government will give you £1. So put in £4,000 each year and the government will give you £1,000 every year until you’re 50.
· Cutting taxes for small businesses. 600,000 small businesses will pay no business rates at all, an annual saving of up to almost £6,000 forever, and 250,000 small businesses will get a tax cut on their business rates bill. We have also cut Capital Gains Tax to boost enterprise and cut Corporation Tax to support job creation.
Caroline welcomed the Chancellor’s Budget, saying:
“Britain’s economy is strong, growing and resilient because of the steps that the Government has taken over the past six years. But the health of our economy is not immune to global uncertainty – financial markets are volatile, productivity growth is too low and the outlook for the global economy is weak.
“That is why this Government is taking the steps needed to ensure that Britain is fit for the future. That means ensuring we have sound public finances at the same time as improving schools, helping savers, cutting taxes for both hardworking people and businesses, and giving the green light to major infrastructure projects.
“There are no short term solutions to the long term problems that we face. And I am sure local residents would agree with me that by investing in the next generation, we can fix the problems of tomorrow today.
Read a Hansard Transcript of the budget online.