Rachel has welcomed the biggest package of tax cuts to be implemented at a fiscal event in four decades.
Announced in yesterday’s (November 22nd) Autumn Statement, and with inflation falling, and global economic conditions stabilising, the Government is now able to take the long-term decisions required to strengthen the economy and build a brighter future for people across Redditch and the Villages.
To ensure work always pays under the Conservatives, the Autumn Statement for Growth cuts National Insurance Contributions for 29 million people and reforms the welfare system to toughen up work requirements, ensuring those in the welfare system are incentivised to work.
With Redditch’s economy driven by manufacturing businesses, the Government has delivered a massive boost to this vital sector by making full expensing permanent. This will allow businesses to write off the full cost of qualifying plant and machinery investment, making the UK’s capital allowances regime one of the most generous in the world. It’s expected this will unlock an additional £14 billion of investment over the forecast period, helping to close the productivity gap and drive sustainable economic growth.
Businesses across the constituency will also receive a cut to their business rates. The Government is freezing the small business multiplier yet again, saving an average shop £1,650, and extending the Retail Hospitality and Leisure Relief for a year which supports high street businesses such as shops and pubs.
The Government is also going further with the cost of living to support 1.6 million low-income families with an increase to their housing benefit and has announced the National Living Wage will be boosted by the largest ever cash increase, ending low pay and ensuring hard work is rewarded.
The Autumn Statement for Growth also backs new technologies with a £4.5 billion advanced manufacturing fund and announces new Investment Zones – backing business and supporting new jobs.
Rachel said:
“This Conservative Government is making progress in tackling the immediate pressures in the economy, such as reducing the rate of inflation to help people across Redditch and the Villages with the cost of living.
“This Autumn Statement for Growth is a result of the difficult decisions the Government have taken – meaning the Government is now in a position to cut taxes for businesses and people, and boost economic growth across our constituency.
"Today’s Autumn Statement would not be possible under Labour; they will always the easy way out with a reckless, permanent increase in borrowing that would see inflation and mortgage rates spiral.”
