Milton Keynes MPs praise Chancellor's Spring Statement tax plan

Milton Keynes MPs Ben Everitt and Iain Stewart have today welcomed Chancellor’s Spring Statement, saying it will make life easier for local people.

They say Rishi Sunak’s new tax plan to reduce and reform taxes across the UK will tackle the cost of living and incentivise private sector-led growth.

Ben Everitt, MP for Milton Keynes North, said: “As Conservatives we should always be making sure working people can keep more of the money they earn and the Chancellor’s Spring Statement is doing exactly that."

He added: “A tax cut for nearly 30 million workers and worth over £330 a year, plus a pledge to cut Income Tax in 2024, will all mean more money in the pockets of hardworking families.

“The Spring Statement is tackling the cost of living for workers and for businesses, while ensuring we have a strong economy and keep debt falling.”

Measures set out by the Chancellor include reducing and reforming taxes by:

* Slashing fuel duty by 5p for twelve months, delivering a £5 billion tax cut for drivers. Together with the fuel duty freeze, this will save car drivers £100, van drivers £200, and HGV drivers £1,500 this year, coming into effect immediately from 6pm this evening, across the United Kingdom.

* Rising the National Insurance personal threshold from £9,500 to £12,570 from July, delivering the largest increase in a starting personal tax threshold in British history. This is equivalent to a £6 billion tax cut for nearly 30 million workers and worth over £330 a year starting in July, across the entire United Kingdom. This is the largest single personal tax cut in a decade.

* Helping people keep more of what they earn by cutting the basic rate of income tax to 19 pence in 2024, delivering a tax cut worth £5 billion for over 30 million workers, pensioners and savers – only the second income tax cut in two decades and the first income tax cut for 16 years. This will be worth around £175 for a typical taxpayer.

* Raising the employment allowance to £5,000, delivering a £1,000 tax cut for small businesses. The Employment Allowance cuts employers’ national insurance tax bills by increasing the employment allowance even further to £5,000 from April – that’s a new £1,000 tax cut for half a million small businesses.

* Doubling the existing Household Support Fund to £1 billion, delivering an additional £500 million to the Household Support Fund. This helps the most vulnerable families with the cost of living. The fund is distributed through local authorities in England, so Milton Keynes Council will have discretion over exactly how the funding is used. This is expected to benefit 3 to 4 million vulnerable households.

Iain Stewart, the MP for Milton Keynes South, said: “The current situation in Ukraine reminds us that the UK’s security and ability to be a force of good in the world is, in large part, based on the strength of our economy.

“That is why this Conservative government is going further to strengthen our economy by publishing a new Tax Plan to reduce and reform taxes. This is alongside cutting fuel duty, cutting the basic rate of Income Tax and cutting National Insurance for 30 million working people, meaning people can keep more of what they earn.

“I welcome the Chancellor's Tax Plan as it will deliver the biggest cut to personal taxes in over a quarter of a century for constituents of Milton Keynes South.

"I am also really pleased that local authorities will receive an extra £500 million through the Household Support Fund. This will allow MK Council to distribute targeted support to the most vulnerable families to help them with the cost of living, thanks to this Conservative government."

Chancellor Mr Sunak said: “It is only because this Conservative government is taking the tough but responsible decisions that we can announce taxes are being cut and debt is falling.

“Today’s new tax plan will help families with the cost of living, create the conditions for private sector-led growth, and share the proceeds of growth fairly.

“We are delivering the biggest net cut to personal taxes in over a quarter of a century, and that is only possible because of the disciplined approach to public spending that only a Conservative government can provide.”