Lucy Allan MP has welcomed some aspects of the Chancellor’s statement, setting out the Government’s response to the cost of living crisis and additional investment in public services.
The Chancellor has put those most in need at the heart of his plans and is increasing spending on welfare, pensions, schools and the NHS through an increase of taxes on the highest earners and the profits of energy companies.
The key points of the budget include:
- The largest ever cash increase in the National Living Wage will see the rate rise by 9.7% to £10.42 per hour, benefitting 2 million people.
- To protect the most vulnerable the Chancellor has announced £26 billion of support for the cost of living, including continued energy support, a 10.1% rise in benefits and the State Pension.
- The triple lock on pensions will be protected, as promised in the 2019 manifesto Lucy stood on.
- £25 billion will be raised through tax changes, including an increase in the Energy Profits Levy (windfall tax) and a new tax on the extraordinary profits of electricity generators. The top rate of tax will be reduced by nearly £25,000, ensuring that the highest earners pay more tax.
- The NHS and Social Care system will receive another £8 billion in funding and schools £2.3 billion.
- To drive growth and level up across the country, the Chancellor has also confirmed the commitment to infrastructure projects including Sizewell C Nuclear Power Plant, Northern Powerhouse Rail and HS2
- £20 billion will be ringfenced for the Government’s Research & Development budget to put innovation at the heart of the economy.
- Local authorities like Telford & Wrekin Council will continue to receive discretionary household support funding from Government to give to households who may need further assitance.
Lucy Allan MP said:
The Chancellor has listened to concerns and has put forward plans that address the financial challenges facing many of the least well off in Telford face.
The 15,500 households in receipt of means tested benefits will see their welfare uprated by 10%, and pensioners will continue to be protected by the triple lock.
Tax will increase on the most affluent and on energy profits to fund investment in education and the NHS. The energy price guarantee will remain in place, protecting people from the impact of global energy prices.
This will continue to be a difficult time for many families in Telford as we go into recession, including taxpayers on average to middle incomes. Most people will not see a pay increase matching inflation and will continue to see downward pressure on their disposable income as taxes and prices rise.