Heather Wheeler would like to congratulate the Chancellor on his budget.
Heather Wheeler says: “I am not surprised that my colleague, the Rt Hon Jeremy Hunt MP, The Chancellor, has managed to produce a sensible, costed budget which keeps to the values that I support - as he says those with the broadest shoulders will continue to pay the most tax, however, he understands that a vibrant economy needs people to keep more of the money they work hard to earn to spend – fair to hard workers and good for the economy.
“On the economy, there was good news, inflation is now down, despite complicated and ongoing international pressures. We are doing well in comparison to other G7 countries in terms of internal investment and growth.
“The Government is going to invest a further £2.45 billion in the NHS next year but recognises the problems are not just money but also productivity. “
The main points that will help those living in South Derbyshire are:
PERSONAL
National Insurance rate reductions
The main rate of employee National Insurance Contributions (NICs) is being cut from ten per cent to eight per cent. Combined with the cut at the Autumn Statement, that is a tax cut of over £900 for the average worker earning £35,400 – giving the average earner the lowest effective personal tax rate since 1975. Cutting the main rate of Class 4 NICs (for the self-employed) from nine per cent to six per cent. Combined with the tax cuts for the self-employed at the Autumn Statement, this is a tax cut of around £650 for an average self-employed person earning £28,000 a year.
Heather Wheeler OBE MP says: “The aim of this is to simply to make work pay and those who are in work are actually double taxed at the moment paying both income tax and national insurance tax – this will help working people have more money in their pockets to pay for life’s necessities.”
Changes to Child Benefit
Increasing the threshold for child benefit to £60,000 raising the threshold and halving the rate at which Child Benefit is withdrawn, benefiting some parents by an average of £1,260.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.
Heather Wheeler OBE MP says: “There is currently an unfairness in the system where if two parents are working but earning less than £50,000 they will get child benefit whereas parents with one parent working earning more than £50,000 will not. Raising the threshold will help but the Chancellor’s promise to give child benefits based on household earnings is just plan sensible.”
British ISA
Heather Wheeler OBE MP says: “This is a good idea for those who work and are able to save for their future, an extra £5,000 in tax free ISAs per year if invested in Britain. Again, good for those who work hard and for the economy as a whole”.
Fuel Tax
Heather Wheeler OBE MP says: “I fought for fuel duty to be frozen when I first came into parliament 14 years ago and I am pleased that for the 14th year the duty remains the same. So many people in South Derbyshire rely on their cars for their daily lives this is one less aspect for them to worry about.”
BUSINESSES
Increase the VAT registration threshold for small businesses
Raising it from £85,000 to £90,000
Heather Wheeler OBE MP says, “South Derbyshire is an area of innovation and raising the VAT registration threshold for SMEs from £85,000 to £90,000 will help those who want to either set-up or keep their small business going following some difficult years with the effects of Covid.”
Freezing Alcohol Duty
Heather Wheeler OBE MP says: “South Derbyshire is rightly proud of our pubs and other hospitality venues – the continued freeze on alcohol duty will just help our local pubs and other venues to thrive. I will yet again be supporting one of them soon!”
