Graham Stuart has welcomed the Summer Budget, calling it a “defining” moment for the Government. Key measures in the Budget included:
- A new National Living Wage: The new National Living Wage will mean two and a half million people get a direct pay rise. Those currently on the minimum wage will see their pay rise by over a third this Parliament, a cash increase for a full time worker on the minimum wage of over £5,000.
- Changes to the personal allowance for income tax: There is further support for working people with an increase in the tax-free personal allowance so someone will be able to earn £11,000 before paying any income tax at all. The Government will also raise the 40p rate to £43,000, lifting 130,000 people out of this higher tax rate.
- Cutting tax on business to secure growth, with Corporation Tax reduced to 18 per cent: The Government has already taken this rate to the lowest in the G20 and aligned it for large and small businesses. Corporation tax will now fall to 19% in 2017 and 18% by 2020, helping businesses to hire and create more jobs.
- Extending the Employment Allowance to £3,000 – cutting the jobs tax for firms. From 2016 the Employment Allowance will rise 50 per cent so a firm will be able to employ 4 people full time on the new National Living Wage and pay no national insurance at all.
- Commitment to strong defence: The Budget commits to meeting the NATO pledge to spend 2% of our national income on defence – not just this year, but every year of this decade.
- Investment in transport: The Chancellor confirmed that all money raised from vehicle excise duty will go into a special fund for investment in roads.
- Investing in skills: The Government will introduce an apprenticeship levy on large firms to fund three million more quality apprenticeships. Firms that offer apprenticeships can get more back than they put in. The money will be directly controlled by employers and ministers will work with businesses on how to do this.
Graham Stuart MP said, “This is a defining moment for the Government – a landmark as we move to a higher wage, lower tax and lower welfare economy. The new National Living Wage will make a huge difference to the quality of life of millions of people. We can afford it thanks to the tough decisions this Government has made since 2010 – with the conditions for growth restored and corporation tax cut, people deserve a pay rise.
“There is further good news for families as the personal allowance for income tax rises to £11,000, while the threshold to pay the 40p rate goes up to £43,000. With the OBR estimating that almost a million more jobs will be created over the next five years, the economy will continue to strengthen.
“The wider context of this Budget is that the Conservatives continue to control spending so that we can keep bringing the deficit down. It is only by doing this that we can reward work, protect the elderly, the vulnerable and the disabled and maintain key commitments – including that to a strong defence. This is a Budget to steer Britain through to better times ahead.”