Spring Budget delivers tax cuts for households and families. Today the Chancellor set out his plans to support working families, help businesses to grow jobs and invest in our important public services.
Thanks to the work done by the Government, the UK economy is now outperforming our neighbours in Europe, wages are rising, mortgage rates are starting to come down, and debt is on track to fall as a share of the economy. Inflation has fallen from 11.1% to 4.0% and is set to fall below the Government target a year sooner than expected.
Whilst there is still more to be done, progress made by the Government on supporting our economy has meant the Chancellor can deliver a Spring budget that helps both households, families, and businesses.
Here are some of the key announcements made by the Chancellor today:
- Cuts to National Insurance Contributions (NIC) for millions of working people
The Government is cutting NIC from 10% to 8%. This will save the average person a further £450 a year. 2 million Self-employed individuals will also see a NIC cut from 9% to 6% This will mean an average tax cut of £650 for a self-employed person earning £28,000 a year. - Support half a million families through changes to the High Income Child Benefit Charge
The High Income Child Benefit Charge has now been increased from £50,000 to £60,000. By April 2026 the Government will be ending the unfairness for single earner families by moving towards a household system. - Household Support Fund extended
The Household Support Fund has been extended for another six months. This will help councils support vulnerable people through warm spaces and food vouchers. - Fuel Duty frozen
Fuel duty has been frozen for another 12 months and the Government is keeping the 5p cut which was due to end this month. - Increase the VAT registration threshold for small businesses
The threshold for VAT registration will go up to £90,000 and this frees up many more small businesses from paying VAT. This will support small businesses and encourage them to grow. This will have a positive impact on high streets encouraging our small businesses to invest their money locally. - Alcohol Duty frozen
The Chancellor has thrown a lifeline to pubs announcing that Alcohol duty has been frozen until next year.
Commenting on the Spring Budget, Jack Brereton MP said:
“Today’s Spring Budget is fantastic news for households, families, and businesses. The last few years have seen many faced with tough financial challenges and I know that residents in my constituency will welcome these tax cuts and wider support for families.”
“This Budget cuts taxes for hardworking families and business owners across Stoke-on-Trent and North Staffordshire, continues to drive down inflation to help with the cost of living and supports the public services we all rely on.”
“I look forward to working with colleagues and supporting the Government with these hugely welcome steps.”
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.”
