Newspaper column 31 March 2022 - Looking back at the Spring Statement

The situation in Ukraine reminds us that the United Kingdom’s security and ability to be a force for good in the world is in large part because of the strength of the economy.

But, the steps the United Kingdom are taking to sanction Russia are not cost free for people at home: the biggest impact will be for working families.

In order to protect the progress made in our economic recovery and help families with the cost of living, the Chancellor is delivering a new Tax Plan to reduce and reform taxes over the course of this Parliament – helping working people and turbocharging economic growth.

Last week the Chancellor Rishi Sunak at the Spring Statement announced his new Tax Plan to reduce and reform taxes across the United Kingdom – tackling the cost of living and incentivising private sector-led growth.

Measures set out by the Chancellor include reducing and reforming taxes by:

Slashing fuel duty by 5p for twelve months, delivering a £5 billion tax cut for drivers. Together with the fuel duty freeze, this will save car drivers £100, van drivers £200, and HGV drivers £1,500 this year, coming into effect immediately from 6pm this evening, across the United Kingdom.

Rising the National Insurance personal threshold from £9,500 to £12,570 from July, delivering the largest increase in a starting personal tax threshold in British history. This is equivalent to a £6 billion tax cut for nearly 30 million workers and worth over £330 a year starting in July, across the entire United Kingdom. This is the largest single personal tax cut in a decade.

Helping people keep more of what they earn by cutting the basic rate of income tax to 19 pence in 2024, delivering a tax cut worth £5 billion for over 30 million workers, pensioners and savers – only the second income tax cut in two decades and the first income tax cut for 16 years. This will be worth around £175 for a typical taxpayer.

Raising the employment allowance to £5,000, delivering a £1,000 tax cut for small businesses. The Employment Allowance cuts employers’ national insurance tax bills by increasing the employment allowance even further to £5,000 from April – that’s a new £1,000 tax cut for half a million small businesses.

Doubling the existing Household Support Fund to £1 billion, delivering an additional £500 million to the Household Support Fund. This helps the most vulnerable families with the cost of living. The fund is distributed through local authorities in England, who have discretion over exactly how the funding is used. This is expected to benefit 3 to 4 million vulnerable households.

Times are hard, as we come out of the unprecedented circumstances and public spending caused by the COVID-19 pandemic, and with the international issues around the ongoing war in Ukraine caused by the Putin regime.

I am pleased to see that this Government is going further to strengthen our economy, publishing a new Tax Plan to reduce and reform taxes – including cutting fuel duty, cutting the basic rate of Income Tax and cutting National Insurance for 30 million working people – meaning people across Truro and Falmouth can keep more of what they earn.

This Tax Plan delivers the biggest cut to personal taxes in over a quarter of a century – simplifying our system in the long-term whilst we deliver immediate relief for cost-of-living pressures.

I know that times are still hard though, and will continue to do all I can to work with the Government and local and national groups to ensure Truro and Falmouth gets the support we need. To this end this week I launched a Cost of Living Survey, to better inform my work in supporting local people. Please take five minutes to fill out my survey on my website via the link below or contact my office to get sent a paper copy.

https://www.cherilynmackrory.org.uk/truro-and-falmouth-cost-living-survey

As ever, if you need my assistance with anything then my team and I are here to help. Please get in touch with me by email at Cherilyn.mackrory.mp@parliament.uk , or by telephone on 01872 229698. My regular constituency advice surgeries are held in a covid-safe environment at my office, so please do get in touch should you wish to meet me about any matters that I can be of assistance with.