Rt Hon David Evennett, MP for Bexleyheath, has welcomed today’s Budget Statement by the Chancellor, which puts the next generation first. Mr Evennett was present in the House of Commons for George Osborne’s Statement, which outlined the Government’s proposals improve public finances, whilst cutting taxes on business, reforming schools, investing in homes and supporting working people, and includes:
• Cutting taxes for working people. From April next year the tax free personal allowance will rise to £11,500. The higher rate threshold will also increase to £45,000, a tax cut of over £400.
• Freezing fuel duty to help household budgets and support small firms. We have frozen fuel duty for the sixth year in a row. 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.
Mr Evennett said “The Budget ensures Britain continues to grow, by cutting taxes for small firms and helping to create new jobs. It will deliver a bright future for all young people by investing in schools and encouraging those who save. It also backs working people by increasing the income tax personal allowance, so that they keep more of what they earn. Our economy is now stronger and more able to deal with global challenges, thanks to the action that this Government has taken.”