It’s been a few weeks since the Chancellor’s statement on the Spring Budget, and I wanted to take the time to let you know how this package of measures will help achieve long-term, sustainable economic growth for everyone in the UK. Moreover, by breaking down the barriers to work, boosting business investment, and tackling labour shortages, I am sure that the Chancellor’s actions will help boost our local economy here in South Staffordshire.
I know how challenging recent months have been for so many, and I welcome the Chancellor’s decision to maintain the Energy Price Guarantee (EPG) at £2,500 for a further three months, saving a typical household an extra £160 on their energy bills. The Chancellor has also cancelled the scheduled 11p rise in fuel duty and retained last year’s 5p cut to current rates, a tax cut worth £100 this year for a typical driver. With these measures, the total Government cost of living support rises to £94 billion, and it is my sincere hope that the Chancellor’s decisions will continue to bring down inflation and provide the necessary support as we continue to navigate current cost of living pressures.
I was particularly pleased by the Chancellor’s decision to expand the provision of 30 hours free childcare to every child over the age of 9 months, as well as paying the childcare costs of parents on Universal Credit moving into work. This is a transformational change that will make a real difference to families across South Staffordshire. However, this is only one of the Chancellor’s many measures to help people into work. The abolition of the Lifetime Allowance, as well as a 50 per cent increase in the Annual Allowance, will also increase the incentive for older workers to stay in the workforce for longer. Taken together, these reforms have led to the largest upward revision in potential economic growth since 2010.
Businesses across South Staffordshire will also benefit from recent measures. To boost investment, the Government has announced a new policy of ‘full expensing’ for businesses to invest in capital spending over the next three years. This will mean that businesses can write off the full cost of qualifying plant and machinery and the measure is equivalent to a £9 billion annual corporation tax cut. The Brexit Pubs Guarantee will also set tax on draught beer in pubs 11p lower than that sold in supermarkets – a vital lifeline for the local ale.
All in all, the Budget sets out a comprehensive plan to remove barriers to work, boost business investment and support economic growth. The Government's efforts to help households with higher costs bring total support to an average of £3,300 per UK household, whilst the Chancellor’s other measures demonstrate that the UK can be the best place in Europe for companies to locate, invest and grow.
