Friday, 1 December 2023

Campaign Reply - UN Tax Convention

I believe that international cooperation is important in tackling global tax challenges, and the Government actively engages with the Organisation for Economic Co-operation and Development (OECD)’s and UN’s work on tax policy.

The Government is committed to ensuring international tax rules and standards are effective as well as inclusive. To this end, the Government has supported consensus-based reform of the international tax rules through the OECD, including through the G20/OECD Inclusive Framework (with over 130 members) and the Global Forum (with over 160 members), in which non-OECD members participate on an equal footing. This reflects the strong expertise that sits within the OECD and the steps taken in recent years to become ever-more inclusive of the needs of developing countries.

In the UK, the estimated tax gap for the 2021/22 tax year is at an all-time low of 4.8 per cent, down from 7.5 per cent in 2005/06. The Government is also investing a further £47.2 million to improve the capability of HM Revenue and Customs to collect tax debts, including supporting those who are temporarily unable to pay.

Campaign Reply - RCGP General Election Manifesto

I would like to pay tribute to all GPs for their work in caring for patients across the country as we have emerged from the pandemic.  Please be assured that I share the RCGP’s desire to strengthen general practice and provide the best conditions for GPs to support patients. 

The Government has prioritised the recovery of primary care services over the last few years, but I know there is more progress to be made. At least £1.5 billion is being invested to create an additional 50 million general practice appointments by 2024 by increasing and diversifying the workforce. As part of the Delivery Plan for Recovering Access to Primary Care, up to £645 million will be provided over two years to expand the services offered by community pharmacies (subject to consultation), helping to take the pressure off GPs and providing patients with more options for care.

Of course, we need to ensure that there are enough GPs to deliver patient care in the future.  The Government remains committed to growing the GP workforce and number of doctors in general practice as soon as possible.  There were over 2,000 more full-time equivalent doctors working in general practice (including trainees) in June 2023 compared to June 2019.  

Looking ahead to the future, the NHS Long Term Workforce Plan – backed by the Government – set out an ambition to increase GP training places to 6,000 by 2031. It is also important that we do more to recruit more GPs in areas of greater disadvantage, and the NHSE Targeted Enhanced Recruitment Scheme is providing 800 places available for GP trainees committed to working for three years in areas identified as having the hardest to recruit to training places in England.

I fully appreciate the challenges around workload in general practice, and the NHS is running several schemes to help retain and keep more GPs. This includes the National GP Retention Scheme, which offers financial and educational support to help doctors who might otherwise leave the profession remain in clinical general practice.  The Government is also committed to cutting unnecessary burdens on GPs through the Bureaucracy Busting Concordat (published in August 2022), and streamlining the Investment and Impact Fund indicators from 36 to 5 from 2023/24.

Changes have also been made to free up GPs’ time for appointments, including expanding the range of healthcare professionals who can sign fit notes and provide medical evidence to the DVLA.

General Practice is central to meeting the healthcare needs of local communities, and needs to be given priority when new housing development takes place. I am pleased that the Government will be consulting planning guidance to raise the priority of primary care, and will be supporting the development of a new standardised design for primary care buildings, providing modern facilities that create a positive working environment for staff and patients and use modern construction methods.

Campaign Reply - Schools funding and investment

I am absolutely determined that children in Truro and Falmouth and around the country should receive a high-quality education.

More money than ever before is being invested in schools, ensuring every child gets a world-class education. In 2024-25, the total core schools budget will be at its highest-ever level, in both real terms and in real terms per pupil. This budget will total £59.6 billion in 2024-25, an increase of £1.8 billion from this year and on top of the £3.9 billion rise in 2023-24.

Mainstream schools in England will receive an average of around £6,000 for each pupil from next year through the National Funding Formula, with additional funding for teacher pay on top of that. Overall, funding will be at its highest-ever level in real terms per pupil in 2024-25, as measured by the independent Institute for Fiscal Studies, underlining the Government’s commitment to education.

This money can be spent on staff salaries, school trips and classroom equipment which will raise school standards and educational outcomes. These increases form part of the additional £9.8 billion being invested in the schools core budget by 2024-25, compared to 2021-22.

Furthermore, teachers in England received the highest pay award for 30 years (6.5 per cent), after the Government accepted in full the recommendations set out by the independent pay review body. In doing so, the Government meets its manifesto commitment to raise the minimum starting salary for teachers to £30,000 from September. This deal has ensured teachers and school leaders called off strike action.

The Department for Education also committed to a long-term School Rebuilding Programme, renovating 500 schools in England over the next decade. In December 2022, the Government announced that a further 239 schools and sixth form colleges have been provisionally selected for the School Rebuilding Programme, which means that in total 400 schools have benefitted to date. The Government has allocated over £13 billion since 2015 to maintain and improve school facilities across England, including £1.8 billion for the 2022-23 financial year, and an additional £500 million in capital funding to schools and colleges this financial year for energy efficiency upgrades.

Campaign Reply - The Autumn Statement 2023

Thank you for contacting me about the Chancellor’s Autumn Statement.

In January 2023, the Prime Minister set out five priorities for government. Three 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, the Government is 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.

I welcome that Autumn Statement 2023 sets out the biggest package of tax cuts to be implemented at a fiscal event since the 1980s, while at the same time getting inflation falling and borrowing lower. The Chancellor will reduce taxes for 27 million working people from January by cutting the main rate of National Insurance contributions from 12 to 10 per cent. For the average worker earning £35,000 a year, this means a tax cut of £450. I also welcome that the Government will boost the National Living Wage (NLW) by 9.8  to record levels of £11.44 an hour. A full-time worker on the NLW will see their pay increase by over £1,800.

The Government is also continuing to support the most vulnerable. All working-age benefits will be increased in full by 6.7 per cent, boosting the incomes of 5.5 million households who receive Universal Credit by an average of £470 a year. The Government will also increase Local Housing Allowance rates, making 1.6 million families better off by an average of £800 in 2024-25. In line with the Triple Lock, pensions will be boosted by 8.5 per cent, ensuring dignity in older age for those who have worked their entire lives.

As announced at Autumn Statement 2023, the Government is cutting business taxes by £11 billion – the biggest business tax cut in modern British history – by permanently enabling businesses to offset investments against their tax bills. For every pound a business invests, its taxes are cut by up to 25p. Companies can now permanently claim 100 per cent capital allowances on qualifying main rate plant and machinery investments. This will generate £3 billion of additional investment each year and £14 billion over the next five years. 

The Government is also freezing the business rates multiplier for small businesses for a fourth consecutive year, saving an average shop £1,650. It is also extending the Retail, Hospitality and Leisure relief, meaning 230,000 properties will benefit from almost £2.4 billion in support, protecting small businesses in our high streets and town centres. 

I welcome the Chancellor’s announcement of a £110 million investment for local planning authorities affected by ‘nutrient neutrality’ rules, unlocking 40,000 new homes over five years. The Chancellor is also reforming our planning system to tackle the delays faced by businesses in building infrastructure, including by cutting consent times for nationally significant infrastructure projects to two and a half years as soon as possible.

The Chancellor has announced new investments in three Investment Zones and the creation of a new Zone in Wrexham, building on the 12 existing Investment Zones across the country. I welcome that the Government will also extend the programme of Investment Zones announced at Spring Budget 2023 from five years to ten years and introduce a new additional fund of £150 million that areas can access to help land investments. 

This Autumn Statement takes another step forward in tackling the long-term economic challenges facing the UK, allowing us to build a more dynamic economy that delivers prosperity across the country and the change it needs. 

Thank you again for taking the time to contact me.

Campaign Reply - The Emergency Energy Tariff

I am aware of the impact that global energy price rises have had on consumers, and I welcome the action taken by the Government to support the most vulnerable. 

To support consumers, the Government is maintaining the Energy Price Guarantee (EPG) until April 2024. As you may know, the EPG limits the amount that consumers can be charged per unit of gas or electricity. Although energy prices are currently below the level at which EPG payments would be made, its continuation through winter will protect consumers from price spikes.

 

Alongside this, over 2023-24, the Government is providing targeted support to the most vulnerable through Cost of Living Payments, which will be paid to 8 million households on eligible means-tested-benefits, 6 million people on eligible disability benefits, and 8 million pensioner households. Additionally, to empower local authorities to provide discretionary support to those most in need, the Government has provided £1 billion of extra funding to the Household Support Fund, bringing the total of the Fund to £2.5 billion.

 

Moreover, as you may know, benefits and the state pension were increased by 10.1 per cent, in line with inflation, in April 2023. Indeed, in April 2024, all working-age benefits will be uprated in line with September 2023 Consumer Price Index Inflation – 6.7 per cent.

 

More broadly, to shield consumers from fluctuations in the global energy market, the Government is taking steps to safeguard Britain's energy supply and power up Britain. Alongside the measures I have outlined, the Government will bring forward legislation to reduce dependence on higher-emission imports from overseas, including from countries like Russia.


Campaign Reply - Do you support the Firefighter's Manifesto?

Let me start by saying that I greatly value the work firefighters do, often selflessly putting themselves in danger to keep us and our families safe. I know that the Government is grateful for the work fire and rescue services do in their communities. 

Regarding investment, I understand that fire and rescue authorities are receiving around £2.6 billion in 2023-24. Standalone fire and rescue authorities are seeing an increase in core spending power of 8.1 per cent in cash terms compared to 2022-23. On firefighters’ pay, the National Joint Council is responsible for overseeing decisions on pay and terms and conditions. However, I note that the Government’s Fire Reform White Paper set out proposals to conduct an independent review of the current pay negotiation process and consider its suitability for a modern emergency service. 

 

While I appreciate your concern, I do not believe it is necessary to introduce a statutory duty for firefighters to respond to flooding, given that fire and rescue authorities already have the power to respond to all kinds of emergencies for which they do not have a specific statutory duty, including flooding. The Government supports this by providing fire and rescue services with additional resources to tackle flooding such as high-volume pumps and water rescue assets. 

 

Some of the issues you raise, such as the firefighters’ pension scheme, are matters for individual employing fire and rescue authorities. It is also for individual fire and rescue authorities, as employers with responsibility for health and wellbeing, to ensure that firefighters receive the appropriate equipment and training they need to safely respond to the wide range of incidents which they attend. I completely agree with you about the importance of the health and safety of firefighters, and I am pleased that the Home Office provides significant grant funding to the National Fire Chiefs Council programmes including work that specifically focuses on the health and wellbeing of firefighters.

 

While I appreciate that this may not be the exact response you were hoping for, I do hope that I have been able to provide you with some assurance.

Tuesday, 28 November 2023

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.