After what has been a testing year steadying the ship, the Chancellor of the Exchequer, Rt Hon Jeremy Hunt MP, this week gave his Autumn Statement. This has laid the foundations for long-term growth and demonstrates that Britain is again on the right track to prosperity. I want to tell you how the measures in the Autumn Statement will benefit the people of Derbyshire.
The key to growing our economy is focusing on its engine – the workforce. This means we must encourage more people back into work. I welcome the Government’s new Back to Work Plan, which will help those people who are either long-term sick, disabled or unemployed to look for and, crucially, to stay in work.
It is great news that the Chancellor is rewarding hard-working people by cutting the headline rate of National Insurance (NI) for employees by 2 per cent. This will be introduced in January 2024 and will benefit nearly 28 million people across the country, including many in Derbyshire. The self-employed will be particularly happy that the headline rate of Class 4 NI will be cut by 1 per cent, whilst Class 2 NI will be abolished altogether. For those on low pay, the National Living Wage will be increased by nearly 10 per cent to £11.44 an hour from next April. These measures will reward the hard-working people of Derbyshire and deliver our manifesto commitment to eliminating low pay.
Backing British businesses was a core message in the Chancellor’s Autumn Statement. The Chancellor announced that he will cut business taxes by £11 billion by permanently enabling businesses to invest for less and offset investments against their tax bills. This means that for every pound a business invests its taxes are cut by up to 25p. Companies can now permanently claim 100 per cent capital allowances on qualifying main rate plant and machinery investments. This is anticipated to generate £3 billion of additional business investment each year, and £14 billion over the next five years.
Business rates will also be cut by freezing the small business multiplier, saving an average shop around £1,650.00 a year. The Chancellor pledged his ongoing commitment to supporting the Great British Pub by freezing alcohol duty until August 2024 and extending the 75 per cent business rates discount for retail, leisure and hospitality for another year. This could save a Derbyshire pub over £12,800.00 next year. Additionally, I welcome the news that a new East Midlands’ Investment Zone will be created which will, without doubt, provide thousands of new jobs to our region.
The cost-of-living situation has impacted many across Derbyshire and I am pleased that the Chancellor has announced a package of measures to support those on low incomes. From April 2024, benefits will increase in line with September’s inflation figure of 6.7 per cent. Local Housing Allowance rates will also be increased meaning 1.6 million families will be, on average, £800.00 better off in 2024-25. There is also great news for those receiving the State Pension, as from April 2024 it will increase by 8.5 per cent to £221.20 a week. This will provide pensioners with up to £900.00 in extra income a year. This shows that the Conservative Party has honoured their Triple Lock guarantee in full and will always back pensioners.
The Chancellor has delivered a sensible Autumn Statement which balances proportionate tax cuts against the continued threat posed by inflation. I know that the Autumn Statement will be well received in Derbyshire and its people will prosper because of it.
