As inflation continues to fall – from a peak of 11.1 per cent in 2022 to 3.2 per cent today – I am acutely aware of the need for further action to ease the burden on people’s pockets.
This month we saw additional measures enacted to ensure more money in workers’ wallets. With the rate of National Insurance cut by a further 2 pence – together with tax cuts announced at the Autumn Statement last year – these decisions are worth £900 for the average worker on £35,400.
Action is also being taken to support self-employed workers, with a combined tax cut worth £650 for the average earnings of £28,000 a year.
As a result of tax cuts, and above-inflation increases to tax thresholds since 2010, an average worker in 2024-25 will pay over £1,500 less in personal taxes than they otherwise would have done.
Also coming into effect this month is an increase to the National Living Wage (NLW). Some 310,000 workers in the south east of England will benefit from a 9.8 per cent NLW increase: boosting this to £11.44 an hour. This is a £1,800 annual salary rise to a full-time worker on the National Living Wage.
By freezing the small business rates multiplier for small businesses for a fourth consecutive year, an average shop will save £1,650 with more than 113,000 businesses in the south east benefiting.
Extending Retail, Hospitality & Leisure relief will benefit 230,000 properties with almost £2.4 billion in support, protecting small businesses in our high streets and town centres. This will cut the cost of business rates for over 37,000 firms in the south east.
Pensions are also being boosted in line with the Triple Lock. The basic State Pension, the new State Pension and Pension Credit standard minimum guarantee are being uprated by 8.5 per cent: this will see the State Pension rise by £900 this year. Targeted support includes the Warm Home Discount and the Winter Fuel and Cold Weather Payments.
In 2024-25 the Government will fully fund apprenticeships in small businesses by paying the full cost of training for anyone up to the age of 21. This £60 million backing will reduce costs for businesses and deliver more opportunities for young people.
Government’s measures are expected to enable up to 20,000 more apprenticeships, unlocking the opportunities our young people deserve.
Since 2010 some 730 young people in Crawley have started an apprenticeship and the Government are also increasing the amount of funding that large employers who are paying the Apprenticeship Levy can pass onto other businesses: from 25 per cent of their unused Levy to 50 per cent.
Securing prosperity for people throughout Crawley is what I will continue to pursue.
Henry Smith MP
