Today the Chancellor made his Spring Budget Statement in the House of Commons and I was really pleased that he confirmed that the Household Support Fund, which was due to end this month will continue at its current level for another 6 months. Having helped establish the fund in 2021 and the predecessor scheme when a Minister at the Department for Work and Pensions, I very much welcome that the fund has been extended. The fund has helped millions of families with £2bn of support having being distributed to date.
This Budget will also:
Cut taxes for 27 million working people from April, by again cutting the main rate of employee National Insurance Contributions(NICs) from ten per cent to eight per cent.
Cut taxes for two million of the self-employed, by cutting the main rate of Class 4 NICs from nine per cent to six per cent.
Support half a million families through changes to the High Income Child Benefit Charge by raising the threshold and halving the rate at which Child Benefit is withdrawn, benefiting some parents by an average of £1,260. By April 2026 we will also end the unfairness for single earner families.
Reduce debt, with overall debt beginning to fall next year and the Office for Budget Responsibility (OBR) forecasting we will meet our fiscal rule to have debt falling as a share of the economy.
Freeze alcohol duty, alleviating pressure on the hospitality sector.
Maintain the five pence cut to fuel duty and freeze rates for the fourteen th consecutive year, helping keep motoring costs down–a £3.1 billion tax cut for drivers.
Cut Capital Gains Tax on residential property sales, encouraging those who want to sell their second homes and buy to lets to make more houses available for families.
Increase the VAT registration threshold for small businesses for the first time since 2017, raising it from £85,000 to £90,000
Support and reform the NHS with £2.45 billion for next year and a new £3.4 billion productivity plan, saving money, freeing up clinicians’ time to focus on patients, and cut wait times.
Introduce a new duty on vapes, protecting young people and children from the harm of vaping.