What was announced?
- Cut taxes for 27 million working people from April, by again cutting the main rate of employee National Insurance Contributions (NICs) from 10% to 8%. Combined with the cut at the Autumn Statement, that is a tax cut of over £900 for the average worker earning £35,400 – giving the average earner the lowest effective personal tax rate since 1975.
- Cut taxes for two million of the self-employed, by cutting the main rate of Class 4 NICs from 9% to 6%. Combined with the tax cuts for the self-employed at the Autumn Statement, this is a tax cut of around £650 for an average self-employed person earning £28,000 a year.
- Support half a million families through changes to the High Income Child Benefit Charge by raising the threshold and halving the rate at which Child Benefit is withdrawn, benefiting some parents by an average of £1,260. By April 2026 we will also end the unfairness for single earner families.
- Reduce debt, with overall debt beginning to fall next year and the Office for Budget Responsibility (OBR) forecasting we will meet our fiscal rule to have debt falling as a share of the economy.
- Freeze alcohol duty, alleviating pressure on the hospitality sector.
- Maintain the 5% cut to fuel duty and freeze rates for the fourteenth consecutive year, helping keep motoring costs down – a £3.1 billion tax cut for drivers.
- Cut Capital Gains Tax on residential property sales, encouraging those who want to sell their second homes and buy to lets to make more houses available for families.
- Increase the VAT registration threshold for small businesses for the first time since 2017, raising it from £85,000 to £90,000.
- Support and reform the NHS with £2.45 billion for next year and a new £3.4 billion productivity plan, saving money, freeing up clinicians’ time to focus on patients, and cut wait times.
- Introduce a new duty on vapes, protecting young people and children from the harm of vaping.
- Reform our tax system – ensuring those with the broadest shoulders contribute a bit more.
What does this mean for London?
- Cutting National Insurance Contributions for 4.4million workers in London by over £763 a year, encouraging hard work by cutting taxes to grow the economy.
- Freezing alcohol duty to support over 12,000venues in London, backing the local economy and driving costs down for businesses.
- Freezing fuel duty supporting drivers in London, delivering the fourteenth consecutive fuel duty freeze under the Conservatives, helping to save motorists money at the pump.
- Taking thousands of businesses out of paying VAT by increasing the VAT threshold for small businesses, creating jobs and growing the economy.
- Supporting more parents across London by increasing the High Income Child Benefit Charge threshold and introducing a taper rate, supporting almost half a million families across the country with the cost of raising a child.
- Supporting Transport for London with a £250 million settlement, bringing total Conservative government funding to TfL to £6.6 billion since 2020.
- Backing the Thames Freeport, extending the window to claim the tax reliefs at freeport sites from five to ten years, attracting more investment to create new jobs and grow the economy.
What does this mean for Uxbridge & South Ruislip?
- Alcohol duty FROZEN; Helping the pubs and restaurants in our patch.
- NI CUTS; More residents will have more money in their pockets.
- Fuel duty FROZEN; Motorists are better off, whether you're a deliverer, cabbie or carer.
- Increasing VAT for small businesses; Helping entrepreneurs start their businesses, and keeping our high streets busy.
