Buckingham MP ‘convinced the Chancellor’s new Growth Plan is the right course’

The economic aftershocks of the pandemic, coupled with the highly inflationary impacts of Putin’s invasion of Ukraine, mean we are at a fork in the road. Carry on as was and watch the Bank of England’s predictions of recession come true, or go for serious economic growth.

That is why I am absolutely convinced that Chancellor of the Exchequer’s new Growth Plan is the right course - a plan that will put more money back into the pockets of individuals and businesses.

First and foremost, the plan tackles the number one issue on everyone's mind at the moment - the cost of living, especially energy prices.

Energy bills were due to rise by £6,500, but through the government's Energy Price Guarantee, the typical household energy bill will be capped at £2,500 a year, in addition to the £400 support every household will start receiving in October.

Support for the least well off remains much higher. Effectively, people will see their energy bills cut by up to £1,400 through the Energy Price Guarantee, whilst businesses eligible for the Energy Bill Relief Scheme will have their energy bills slashed through the cutting of wholesale gas prices.

The plan is also clear about how the UK strives for economic growth. Thanks to sound economic management over the past 12 years, we start from a strong position, enjoying second lowest debt-to-GDP ratio in the G7.

We will invest in our future while remaining fiscally responsible and committed to driving down debt in the medium term.

But you cannot tax your way to prosperity. Growth comes from setting businesses free, creating the incentives to grow, to invest, and to employ more people.

And the success of those businesses is where the public money comes from, through taxes, to pay for public services.

A slow-growing economy – or worse a declining economy – means less money for the NHS, schools, social care, policing, and all the other services we care about.

That is why I was delighted to see the Chancellor set out a bold, tax-cutting plan to get our economy growing properly again, including:

- Cutting National Insurance contributions by 1.25 per cent, helping the average worker keep £330 a year more.

- Keeping Corporation Tax at 19 per cent, driving economic growth – meaning the UK will have the lowest Corporation Tax rate of any major economy in the world. That is great news for new jobs, job security and productivity.

- Cutting the basic rate of Income Tax to 19p for 31 million people from April 2023 (a year earlier than planned).

- Abolishing the additional rate of Income Tax altogether from April 2023, meaning we will have a simpler, more competitive economy that rewards enterprise, which in turn benefits the whole economy.

- Cutting stamp duty permanently by doubling the nil-rate band to £250,000 (from £125,000), increasing the nil-rate band for first-time buyers to £425,000 (from £300,000), and increasing the value of the property on which first-time buyers can claim relief to £625,000 (from £500,000).

- Freezing alcohol duty for beer, cider, wine and spirits.

Overall, this was a superb set of measures to get the economy growing – and a growing economy means a more prosperous life for everyone.