Tax cuts will help Worcester families as inflation falls
Worcester families earning the average wage of £35,400 a year will benefit from a tax cut worth £900 compared to this time last year, thanks to the Conservative Government’s Budget.
At today’s Budget, the Chancellor Jeremy Hunt announced that National Insurance contributions will be cut from ten per cent to eight per cent, meaning Worcester families keep more of the money they earn. Taken together with the cut to National Insurance announced last year, the Conservatives have delivered a tax cut for 27 million working people worth a total of £900 a year for a worker on the average salary of £35,400.
As well as putting more money back in people’s pockets through tax cuts, the government is supporting more parents with the cost of childcare and freezing fuel duty for the fourteenth consecutive year.
Thanks to Conservative led tax cuts, and above-inflation increases to the lower threshold for income tax since 2010, an average worker in 2024-25 will pay over £1,600 less in personal taxes than they otherwise would have done.
The cut to National Insurance, together with the tax cut announced at the Autumn Statement 2023, means a hard-working family in Worcester with two earners earning the average wage of £35,400 will receive a combined annual tax cut of £1,827.
Commenting, Robin said:
“There were a number measures in today’s budget to benefit Worcester families, and I am particularly to see work being rewarded with a further cut in National Insurance by a further six months. Since I was first elected in 2010 we have more than doubled the threshold at which people start to pay tax, but for people who are self employed the extra cost of national insurance has long been a concern, bringing this down helps to simplify the tax system and make work pay."
“The most vulnerable in the city will benefit from a welcome extension in the Household Support Fund. There will be support for half a million families across the UK, with the high income child benefit charge being assessed on a household basis, instead of individual incomes, and the threshold being raised from £50,000 to £60,000. Many constituents have raised concerns with me about the way this worked previously and my select committee had recommended changes along these lines,"
“Freezing fuel duty helps support families and businesses with the cost of living and helps keep inflation downs The alcohol duty freeze is another important measure to keep down the price of a pint and protect hospitality businesses in the city. I have long campaigned to back our local pubs and I am grateful the Chancellor has taken this measure to support our bars and pubs who are still recovering from the impact of Covid.”
Commenting, Chancellor of the Exchequer Jeremy Hunt MP said:
“Because the Conservatives are sticking to the plan with the economy inflation is down from 11.1 per cent to 4.0 per cent, meaning we can cut taxes and put more money in people’s pockets to grow the economy.
“Our Budget cuts taxes to reward work, supports small businesses and helps more parents with the cost of childcare to grow the economy and fund public services.
“By sticking to the plan, the Conservatives will deliver a stronger economy to build a brighter future. Labour cannot say what they would do with the economy because they do not have a plan and would take us back to square one.”
