The Chancellor, Kwasi Kwarteng, has set out the Government’s Growth Plan announcing tax cuts, energy relief, duty freeze along with other plans.
The MP for Carlisle, John Stevenson has welcomed the Growth Plan saying: “I welcome the Growth Plan set out by the Chancellor today.
““A new approach for a new era”, the largest tax cuts for 50 years with the intention to boost the economy, increase revenues with more money for public services, prevent a massive increase in the national debt whilst at the same time lowering cost of living pressures.
“Many households in Carlisle will be able to see a real difference in their pocket with measures addressing the rising costs of energy and cost of living pressures, and changes to national insurance contributions and income tax.
“Energising our local economy will bring more skilled and better paid jobs for our workforce, encouraging amongst others, our young people to see a future for themselves in the area they have grown up in.
“I welcome the fact that Government is on the side of our people. On a regional scale, this is a great opportunity to grow the north, unleashing the power of and bringing in investment from the public and the private sector to stimulate our northern economy.
“For far too long there has been too many barriers to growth and I look forward to working with Government and business to ensure this happens.”
To tackle the rising cost of electricity and gas the Chancellor has brought in The Energy Price Guarantee will limit the unit price consumers pay for electricity and gas.
For the next two years the typical annual household bill will be £2,500.
The Energy Bill Support Scheme will be retained giving households £400 off their bills this winter.
The Energy Bill Relief Scheme will discount wholesale gas and electricity prices for all businesses, charities, schools and hospitals. This will provide a price guarantee equivalent to what has been offered to households.
The basic rate of income tax will be cut to 19p (19 percent) for 31 million people by April 2023.
That’s a tax cut for 31 million people in just a few months time.
National Insurance Tax contributions will be cut by 1.25 per cent, helping the average worker keep £330 a year more.
The additional funding for the NHS and social care services will be maintained at the same level.
Stamp duty will be cut permanently 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).
These steps mean 200,000 more people have been taken out of paying stamp duty altogether.
38 Investment Zones will be created across England, driving growth and unlocking housing across England by liberalising planning, delivering tax incentives and wider support for local economies that have been left behind for too long.
Investment Zones will be delivered in partnership with local leaders to secure the right zones across regions potentially like Cumbria, North of Tyne and the Tees Valley.
Corporation Tax will be kept at 19 percent, driving economic growth by encouraging business in the UK, giving them the freedom to reinvest, boost wages and create jobs.
Alcohol duty for beer, cider, wine and spirits will be frozen next year saving 3p off a pint of beer and 12p on a glass of wine.
The introduction of Minimum Service Levels for transport services in Great Britain, will ensure militant strike action cannot derail economic growth, and union bosses cannot hold working people to ransom.
Making work pay by strengthening the Universal Credit sanctions regime, setting clear work expectations including applying for jobs, attending interviews or increasing hours thereby incentivising people to take up more work and have the security of their own income.