Today, HM Government delivered ‘The Growth Plan’ – setting out support for families with energy bills and unleashing a new era of growth through tax cuts and investment incentives.
Dr James Davies MP has welcomed the Chancellor’s measures, set out for families across the country, who will have their energy bills cut by an average of £1,400 through the Energy Price Guarantee.
This is in addition to existing targeted help for pensioners (£300), the disabled (£150), those on means-tested benefits (£650) and all in Council Tax bands A to D (£150).
It is also in addition to the recent reduction of the Universal Credit taper rate and increase of the work allowance (worth around £1,000 a year for two million low income families), the rise in the income threshold at which people start paying National Insurance from £9,500 to £12,570 (worth over £330 individually), the increase in the National Living Wage to £9.50 an hour, the increase in the Warm Home Discount to £150 for three million low income households, the increase in the Household Support Fund to £1.5 billion to help the lowest income households with food and utility costs, and discretionary funding available via local authorities.
The Chancellor confirmed people across the Vale of Clwyd will benefit from personal tax cuts – with National Insurance contributions falling by 1.25 per cent – putting an extra £330 a year in people’s pockets and helping with cost-of-living pressures. A reduction in the basic rate of income tax to 19p is to follow for 31 million people from April 2023.
Businesses and charities, and also the public sector, such as schools and hospitals will, through the Energy Bill Relief Scheme, see support worth up to half the price of expected energy prices this winter.
Businesses will no longer see a rise in Corporation Tax beyond the existing 19% (the lowest in the G20), while the NI cut will save 920,000 UK businesses almost £10,000 on average next year. The annual investment allowance will remain at £1m, meaning that companies can deduct 100% of the cost of qualifying plant and machinery in the first year. IR35 rules will be simplified. Alcohol duties are to be frozen and draught relief will be extended to cover smaller kegs of 20 litres and above to help smaller breweries. The Chancellor also announced a shake up of the welfare system, whereby those working under 15 hours a week and claiming benefits are encouraged to seek more work. The plan is that this will boost incomes for families and help businesses obtain the domestic workers they need, all while supporting economic growth.
Alongside these measures the Government announced further changes – including cutting stamp duty permanently in England by doubling the nil-rate band to £250,000 (from £125,000), increasing the nil-rate band for first time buyers to £425,000 (from £300,000) and increasing the value of the property which first-time buyers can claim relief to £625,000 from (£500,000). It remains to be seen whether the Welsh Government will replicate this move through its Land Transaction Tax.
The Government’s Growth Plan also unleashes 38 Investment Zones, unlocking housing and driving growth through tax incentives. Under this brand new initiative, each Investment Zone will offer generous, targeted and time-limited tax cuts for businesses, backing them to increase productivity and create new jobs and opportunities. This could encourage investment in new shopping centres, restaurants, apartments and offices, helping regenerate local high streets and communities across the whole region.
In addition, over 100 infrastructure projects will be accelerated.
The Government further announced that legislation will be brought forward to introduce Minimum Service Levels for transport services in Great Britain, ensuring militant strike action cannot derail economic growth.
These measures can prompt growth, tackle the immediate energy crisis, remove barriers for business, and build the infrastructure needed to grow the British economy.
Commenting, Dr James Davies MP said:
“In the face of rising energy prices and cost of living pressures it is right that this Government has come forward with a serious support package, which will help reduce peak inflation, alongside a plan for growth.
“I welcome the support set out for people across North Wales today, including cuts to National Insurance contributions and Income Tax – helping families to keep more of their hard-earned money.
“It is vital that Cardiff Bay engages with HM Government to ensure Investment Zones can be rolled out across North Wales as soon as possible, and I am calling on the Devolved Administration to match the Stamp Duty threshold rises.
"I also continue to work to ensure we see the transport infrastructure investment we desperately need for North Wales.
Commenting, The Chancellor of the Exchequer said:
“Growth is not as high as it should be. This has made it harder to pay for public services, requiring taxes to rise and cost of living pressures to increase.
“We need to change this and be unashamed in our Growth Plan – expanding the supply side of the economy, through tax incentives and reform, whilst we help families now by cutting their energy bills by £1,400 a year and slashing personal taxes.
“That is how we will deliver higher wages, greater opportunities, and crucially, fund public services, now and into the future.”
Read more about the 'Energy Price Guarantee' for households: MP welcomes Prime Minister's energy bills plan
Read more about the 'Energy Bill Relief Scheme' for non-domestic bill payers: Energy Bill Relief Scheme welcome news for businesses and charities in the Vale of Clwyd
