MP says Budget may reduce income tax for over 43,000 in Basildon and Billericay
John Baron MP welcomes the measures in yesterday’s Budget, and in particular its focus on continuing to reduce the deficit, lowering taxes and increasing workers’ productivity and pay, the latter through the new ‘Living Wage’.
With economic forecasts showing that Britain will remain the fastest growing major advanced economy for a second year in a row, the Government will continue to reduce the deficit at the same rate as in the last Parliament, with a view to achieving a surplus by 2020.
The Chancellor also announced a new National Living Wage, which will lead to 2.5 million people receiving a direct pay rise. Workers currently on the minimum wage will see their pay rise by over a third during this Parliament, an increase of over £5,000 for a full-time worker.
In addition, raising the personal allowance threshold to £11,000 from next April will take even more people out of income tax altogether. Raising the 40p tax rate threshold to £43,000 will lift 130,000 people out of the higher rate.
Reducing corporation tax to 18% will boost business and will give Britain the lowest rate in the G20. This will help large and small businesses alike, and the Government intends to cut corporation tax still further in the years ahead.
In addition, extending the Employment Allowance to £3,000 from April 2016 – a 50% increase – will further cut tax for businesses, meaning that a firm could employ four people full-time on the National Living Wage and pay no National Insurance at all.
The Chancellor also committed Britain to meeting the NATO commitment of spending at least 2% of GDP on defence in every year of the coming decade. At a time of growing international instability, this is something John has long campaigned for.
“I believe this is a good budget, and confirms the Conservatives’ intentions to help those at the lower end of the payscale in particular by bringing in a new National Living Wage and reducing income tax. Estimates suggest this could help 43,266 people in Basildon and Billericay, with 896 people taken out of tax altogether.”
“There is also good news for our small businesses, with reductions in both corporation tax and, due to a 50% increase in the level of the Employment Allowance, in National Insurance contributions too. This should lead to more jobs, on top of current falling unemployment rates.”
“I am also pleased the Government will be spending at least at least 2% of GDP on defence. This sends a strong message to allies and potential foes alike.”