As I See It: Newark MP Robert Jenrick pleased to see tax cuts in Autumn Statement
I know the last few years have not been easy with the cost of living and so as your Member of Parliament, I am pleased that the Chancellor was able to deliver some tax cuts and other measures aimed at helping working people in the recent Autumn statement, writes Robert Jenrick, MP for Newark.
The Chancellor has presented an unprecedented package of measures aimed at significantly reducing your tax burden, now and in the coming years.
This Autumn Statement stands out as the most substantial tax cuts for many years, reflecting on our determination to stimulate economic growth and incentivise work.
One of the standout features is the reduction in National Insurance Contributions (NICs) for both employed and self-employed individuals. The main employee contribution rate has been slashed from 12% to 10%, while the main rate for class four NICs has been reduced from 9% to 8%.
Additionally, the requirement to pay class two contributions has been effectively abolished — a tax cut worth £9 billion annually. Chancellor Hunt’s decision to reduce the NICs rate from 12% to 10% means the average worker will enjoy a £450 tax cut.
The Autumn Statement also delivers the most significant business tax cut in recent history, with the confirmation that full expensing will be made permanent over a five-year period. This move, valued at £30 billion for businesses, solidifies the UK’s capital allowances regime as one of the most generous in Europe. Small businesses, a backbone of our local economy, are not overlooked, as the package includes a business rates relief worth £4.3 billion over the next five years.
As an MP and former Treasury Minister, I am always keen to see measures to support the self-employed, particularly in light of the very large number of self-employed in our community. I hope this signals a longer-term interest by government in supporting and encouraging self-employed people, small business owners and entrepreneurs.
Small businesses will benefit from the freeze on the small business multiplier, saving an average shop £1,650. The extension of the Retail Hospitality and Leisure Relief and the increase in pensions by 8.5% further contribute to the overall positive impact of the Autumn Statement.
The announcement of a record boost in the National Living Wage to £11.44 per hour is another testament to the government’s commitment to supporting working people. This contrasts starkly with the situation after the last Labour government left office in 2010 when the Minimum Wage was £5.93.
Whilst unemployment in Newark is low by national standards, there are thousands of vacancies at local firms and so I am pleased with the very important package of measures to help people off welfare and into work, and particularly the package of support for those who are off work and long-term sick back into work. For those who need the most help, we have increased the local housing allowance, which will help those on the lowest income struggling to pay rent, including those at risk of homelessness.
The long-term vision to strengthen the economy is evident in these decisions, coupled with the already announced strategic investments in areas like ours. The Prime Minister’s commitment to halve inflation has already yielded positive results, with October’s headline inflation at 4.6%, the lowest in two years.
I welcome the measures outlined in the Autumn Statement, viewing them as a responsible approach to cutting taxes and fostering economic growth. The plan not only drives growth, but also ensures that borrowing remains below expectations, leading to a reduction in debt as a proportion of GDP.
As we witness more money flowing back into the pockets of working people and businesses in Newark, it is evident that the Government is fulfilling its promise to support the economy. The Autumn Statement sets a strong foundation for a brighter future for Newark and the entire country, and as your Member of Parliament, I will continue advocating for policies that prioritise the well-being and financial security of the people I am privileged to represent.
