Newspaper Column 28th November 2023 - The Autumn Statement

Last week was another really busy one for me, capped off by an exciting visit to South Crofty Mine, which is on the verge of reopening and bringing tin mining back to our Duchy. Nationally the big headlines came from the Chancellor’s Autumn Statement. Much like the Budget, the Autumn Statement sets out the government's spending plans and departmental budgets.

In January 2023, the Prime Minister set out five priorities for government. Three of them were economic: to halve inflation, grow the economy, and reduce debt. Since then, inflation has halved; the economy has recovered more quickly from the pandemic than first thought, and debt is on track to fall.

 

Thanks to the stability this has brought, we are now able to focus on the long-term decisions required to strengthen our economy: reducing debt; cutting tax and rewarding hard work; building domestic, sustainable energy; backing British businesses; and delivering world-class education.

Last week’s Autumn Statement marks a major moment as we change gear and focus on how to drive growth in the decade ahead, with the biggest package of tax cuts implemented at a fiscal event since the 1980’s, while getting borrowing lower and inflation falling. These supply side tax cuts are what a Conservative approach to economic growth looks like.

This means combining the biggest tax cut on investment in modern British history with the largest ever cut to workers National Insurance – a £20billion package of annual tax cuts.

The Autumn Statement:

·           Cut taxes for 27 million working people from January by cutting the main rate of National Insurance Contributions from 12% to 10%. For the average worker earning £35,000 a year, that means a £450 tax cut.

·           Cut and simplified tax for 2 million of the self-employed, abolishing an entire class of NICs and cutting the rate of the NICs top rate from 9% to 8% - with an average total saving of around £350 for someone earning £28,000 a year.

·           Cut business taxes by £11 billion – the biggest business tax cut in modern British history by permanently enabling businesses to invest for less and offset investments against their tax bills.

·           Reduce debt, with the OBR forecasting we will meet our fiscal rule to have debt falling as a share of the economy a year early.

·           Cut business rates by freezing the small business multiplier yet again, saving an average shop £1,650, and extending the Retail Hospitality and Leisure Relief for a year.

·           Confirmed plans to boost the National Living Wage to record levels: £11.44 an hour. That is a 9.8% increase, benefiting 2.7 million workers.

·           Helped the most vulnerable with an average income boost of £800. 1.6 million of the families most struggling with the cost of living will have their Local Housing Allowance increased.

·           Boosted pensions, in line with our Triple Lock, by 8.5% - ensuring dignity in older age for those who have worked their entire lives. The basic State Pension will be £3,750 higher than in 2010.

·           Froze alcohol duty, alleviating pressure on the hospitality sector.

·           Increased all working age benefits in full by 6.7%, boosting benefit payments for around 5.5 million households who receive Universal Credit – by an average of £470 a year.

·           Provided support with the cost of living with further Cost of Living Payments this year, helping more than 8 million UK households on eligible means-tested-benefits, 8 million pensioner households and 6 million people across the UK on eligible disability benefits.

·           It will get people into work by reforming welfare and toughening up work requirements.

Following the Autumn Statement, the Office for Budget Responsibility stated that the package as a whole means inflation is forecast to be lower next year than they said at Spring Budget, more proof that our plan is working.

These actions are another step forward in tackling the long-term economic challenges facing the UK so we can build a more dynamic economy that delivers prosperity across our United Kingdom and delivers the change the county needs, and I will continue to do all I can to keep Truro and Falmouth at the heart of the Government’s agenda as we move forward.

As always, I am fully focused on the job at hand and if there is ever anything at all I can do to help, then please do not hesitate to contact me. 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.