Vale of Clwyd MP Dr James Davies has welcomed measures outlined in today’s Spring Statement delivered by Chancellor Rishi Sunak which will benefit people across North Wales.
The UK economy is in a strong position, with clear growth and low unemployment, but the global response to the invasion of Ukraine has created high levels of uncertainty. In response, Rishi Sunak set out a number of plans which will directly benefit people in North Wales.
The income threshold at which people start paying National Insurance will jump from £9,500 to £12,570. This increase will be worth over £330 individually and will mean that even after the Health and Social Care Levy, 70% of people will pay less NI than they did previously.
To reduce the impact of rising petrol and diesel prices, the Chancellor announced the largest ever cut to fuel duty, as of 6pm this evening.
The 5 pence reduction over the next 12 months is expected to save the average driver £100 and a van driver £200. The high level of reliance upon private vehicles mean that this tax cut will be of particular benefit to residents in North Wales.
James met with the Chancellor in advance of his Spring Statement to discuss the pressure which energy bills are having on household finances.
He was therefore delighted that VAT will now be scrapped on energy saving materials. This means that insulating homes and installing solar panels and heat pumps, will be cheaper, helping to reduce energy bills. This announcement is in addition to the £9 billion package which has already been announced.
Rishi Sunak also announced a cut in business employment taxes, by raising the Employment Allowance to £5,000. This amounts to a tax cut for half a million small businesses worth up to £1,000 per business.
These measures will all apply in Wales. The devolved administration will also receive £25 million of Barnett Consequentials, further to the doubled Household Support Fund, which is providing councils with £1bn to assist those struggling with their energy bills.
Following the Statement, James commented:
“I welcome the package of measures which have been announced today.
“As global events cause economic uncertainty, it is more important than ever to ensure that personal incomes are protected.
“I am glad that these changes will apply to individuals and businesses across North Wales, and will closely follow the impact they have locally.”
