Newark and Sherwood MPs Robert Jenrick and Mark Spencer respond to Chancellor's tax plan as cost-of-living crisis bites
The Newark and Sherwood MPs have welcomed tax cuts in the Chancellor's spring statement.
Newark MP Robert Jenrick, however, said he would have preferred for the National Insurance tax rise to have been deferred or cancelled.
He said people's incomes were already being stretched too far.
In his spring statement, Chancellor Rishi Sunak shielded lower earners from the impact of the forthcoming National Insurance hike, cut 5p off fuel duty and promised to cut income tax by 1p in 2024.
Mr Sunak acknowledged the impact of inflation, which is at a 30-year high, and the global economic uncertainty caused by Vladimir Putin’s invasion of Ukraine.
He said inflation was forecast to average 7.4% this year due to disruptions to global supply chains and energy markets, combined with the economic response to Putin’s aggression.
He added the UK’s actions against Mr Putin’s regime were not cost-free for us at home and present a risk to the recovery.
Mr Jenrick said: “It’s good to see some targeted tax cuts in the form of raising the threshold for National Insurance and taking 5p off petrol prices at the pumps.
"I would have preferred the National Insurance rise to be deferred or cancelled as household incomes are very stretched and taxes too high, but these changes are very welcome.
"The forecasts show low growth and falling living standards and so we have to focus on rewarding hard work, encouraging businesses to investment and succeed, and providing targeted support for the poorest through a very hard period.”
Sherwood MP Mark Spencer said: “The situation in Ukraine reminds us that the United Kingdom’s security and ability to be a force of good in the world is in large part based on the strength of our economy.
“That is why this government is going further to strengthen our economy, publishing a new tax plan to reduce and reform taxes — including cutting fuel duty, cutting the basic rate of Income Tax and cutting National Insurance for 30m working people — meaning people can keep more of what they earn.
“This tax plan delivers the biggest cut to personal taxes in over a quarter of a century, simplifying our system in the long term whilst we deliver immediate relief for cost-of-living pressures.”
The International Monetary Fund said the UK had the fastest growing economy in the G7 last year and today’s announcement from the Chancellor seeks to remain responsible on public spending and public finances to protect and increase this growth, while helping families with the cost of living.
Mr Sunak said: “It is only because this 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 government can provide.”
