Matthew has welcomed the Chancellor’s 2016 budget which will take an estimated 2,102 low-earners in the Hendon constituency out of paying income tax altogether, as well as reducing income tax for 62,891, helping working people keep more of what they earn.
The British economy is stronger because over the last six years the Conservatives have confronted our country’s problems and taken difficult decisions. This Budget will continue the hard work of securing sound public finances, but at the same time will cut taxes on business and enterprise to create jobs and deliver prosperity; introduce reforms to improve schools and invest in homes and infrastructure to deliver real opportunity and social mobility; and support working people by helping savers and letting people keep more of the money they earn.
This Budget helps all generations by:
Cutting taxes for working people so they can keep more of the money they earn. From April next year the tax free personal allowance will rise to £11,500, a tax cut for 31 million people that means a typical basic rate taxpayer will be paying over £1,000 less income tax than when the Conservatives came into government. The higher rate threshold will also increase to £45,000, a tax cut of over £400, helping many middle income earners in the Hendon constituency.
Freezing fuel duty to help household budgets and support small firms. Fuel duty will be frozen for the sixth year in a row, a saving of £75 a year to the average driver and £270 a year to a small business with a van. Beer and cider duty will also be frozen to support British pubs.
Improving our schools so our children get the best start in life. Extra money will be provided so every school in England can become an academy and there will be a new sugar levy on the soft drinks industry so they reduce the sugar content of their products to tackle childhood obesity. The money raised will be used to double sports funding in primary schools and fund longer days in secondary schools that offer their pupils a wider range of activities, including extra sport.
Introducing a new Lifetime ISA to help the next generation to save. People like ISAs because they are simple so the ISA limit will increase from just over £15,000 to £20,000 for everyone. For those under 40, many of whom haven’t had such a good deal from pensions, a completely new Lifetime ISA will be introduced. For every £4 saved, the Government will give £1. So young people who put in £4,000 each year will receive £1,000 every year from the Government until they are 50.
Cutting taxes for small businesses. 600,000 small businesses will pay no business rates at all, an annual saving of up to almost £6,000 forever, and 250,000 small businesses will get a tax cut on their business rates bill. We have also cut Capital Gains Tax to boost enterprise and cut Corporation Tax to support job creation.
Matthew welcomed the Budget, saying:
“Britain’s economy is strong, growing and resilient because of the steps we have taken over the past six years. But we face a dangerous cocktail of risks – financial markets are volatile, productivity growth is too low and the outlook for the global economy is weak.
“That is why this Conservative Government are taking the steps needed to ensure that Britain is fit for the future. That means ensuring we have sound public finances at the same time as improving schools, helping savers, cutting taxes for both hardworking people and businesses, and giving the green light to major infrastructure projects.
“This Budget chooses to put forward long term solutions to long term problems. It puts the next generation first and redoubles our efforts to make Britain and Hendon fit for the future.”