Aylesbury MP strongly endorses chancellor’s spring statement

Aylesbury MP Rob Butler has strongly endorsed the tax cuts announced by Chancellor Rishi Sunak at yesterday afternoon's spring statement (23 March).

Mr Sunak confirmed a 5% drop in fuel duty which amounts to a decrease of 5p per litre, it will be in place until March 2023, after coming into effect at 6pm yesterday.

Also the threshold at which people are required to pay national insurance has been increased by £3,000, meaning fewer people will meet the requirement.

A 1p reduction in income tax was also announced by the chancellor today.

Despite these impending changes, the government's independent economic forecaster has projected the sharpest fall in UK living standards in one-year since the 1950s.

Mr Butler said: “People in the Aylesbury constituency will benefit from the Conservative Government’s plan to deliver on the biggest cut to personal taxes in over a quarter

of a century.

"Slashing fuel duty by 5p for 12 months from tonight, raising the National Insurance personal threshold from £9,500 to £12,570 from July, and helping people keep more of what they earn by cutting the basic rate of income tax to 19 pence in 2024 will make a massive difference to local people.”

Mr Sunak's changes were criticised by shadow chancellor Rachel Reeves.

She said in the House of Commons: "Today was the day that the chancellor could have put a windfall on oil and gas producers to provide real help to families, but he didn't.

"Today was the day that the chancellor could have set out how to support businesses and create good jobs, but he didn't.

"Today was the day that he could have properly scrapped his National Insurance hike, but he didn't.

"For all his words it is clear that the chancellor does not understand the scale of the challenge."

Mr Sunak is also set to double the Household Support Fund from £500 million to £1 billion.

The Aylesbury MP added: “I am pleased the chancellor has doubled the existing Household Support Fund to £1 billion.

"This helps the most vulnerable families with the cost of living, and is distributed through local authorities, who have discretion over exactly how the funding is used.

"This is expected to benefit three to four million vulnerable households across the country.

“Buckinghamshire has more micro businesses than any county in the country, so I am also delighted to see the chancellor’s focus on small firms in today’s statement.

"Raising the employment allowance to £5,000 will deliver a £1,000 tax cut for small businesses.”

The chancellor also faced criticism for not addressing people on benefits and failing to provide further meaningful financial assistance to them.

He ignored calls to increase Universal Credit to help some of the poorest people in the country.

Benefits will increase by 3.1% next month, but this doesn't counter an inflation rise of 6.2%.

The chancellor said: “It is only because this Conservative Government is taking the tough but responsible decisions that we can announce taxes are being cut and debt is falling.

“Today’s new Tax Plan will help families with the cost of living, create the conditions for private sector-led growth, and share the proceeds of growth fairly.

“We are delivering the biggest net cut to personal taxes in over a quarter of a century, and that is only possible because of the disciplined approach to public spending that only a Conservative government can provide.”