How the Autumn Statements helps businesses in UXSR
Today the government announced their plans to cut and simplify tax for 2 million of the self-employed, abolishing an entire class of NICs and cutting the rate of the NICs top rate from 9 per cent to 8 per cent – a with an average total saving of around £350 for someone earning £28,000 a year. This helps our local business owners of UXSR.
Business taxes have also been cut by £11 billion – the biggest business tax cut in modern British history by permanently enabling businesses to invest for less and offset investments against their tax bills. This means that, for every pound a business invests its taxes are cut by up to 25p. Companies can now permanently claim 100 per cent capital allowances on qualifying main rate plant and machinery investments. This will generate £3 billion of additional business investment each year, and £14 billion over the next five years.
The government announced to freeze alcohol duty until August, alleviating pressure on the hospitality sector, such as our pubs in UXSR. It would have been normal practice to uprate alcohol duty in line with inflation but to do so would have added 3 pence to the duty of a pint of beer or 18 pence to a bottle of wine, putting more pressure on our hospitality sector.
They are getting people into work by reforming welfare and toughening up work requirements. The more people in work, the more staff there are to help businesses succeed, and keep our highstreets in UXSR bustling.
Local businesses and the jobs they support are a lifeline to many people across UXSR – they have grappled with global shocks such as the pandemic and the energy price spike. That is why I welcome the news the Conservative Government are offering over £4 billion in business rates relief–supporting thousands of businesses across London and hundreds in Uxbridge and South Ruislip. This means businesses can focus on their priorities, like expanding their business or employing new staff –helping to grow the economy.
Commenting, Chancellor of the Exchequer Jeremy Hunt MP said:
“With inflation falling, and global economic conditions stabilising, we are now able to turn our attention to the long-term decisions required to strengthen our economy and build a brighter future. Our Autumn Statement for Growth takes those long-term decisions to reduce debt, cut tax, reward hard work and back British business right across the country. By doing so we are making huge progress in tackling the long-term economic challenges facing the UK so we can build a more dynamic economy that delivers prosperity across our United Kingdom."
How the Autumn Statements helps ordinary people
2 million self-employed people now can save on average around £350 for someone earning £28,000 a year, with our newly announced National Insurance Cut. We will do this by abolishing an entire class of NICs (Class 2) and cutting the top rate of NICs (Class 4) from 9 per cent to 8 per cent. From April 2024, no self-employed person will have to pay Class 2 NICs. Depending on your employment status and how much you earn, the rate of NIC you pay will differ. But ultimately our tax cut will benefit the hardworking people of UXSR:
o A hard-working family with two earners on the average income will be £900 better off.
o A senior nurse with five years of experience will be better off by £600.
o The average police officer will be better off over £630.
o A typical junior doctor will be better off by over £750.
o A typical self-employed plumber will be better off by over £410.
o The typical teacher will be better off by over £630.
Today the Government also announced protecting over one million small businesses from a business rates increase for the fourth consecutive year. In light of inflationary pressures, especially with energy bills, we are supporting small businesses with the cost of their business rates through a £4.3 billion package. Support includes:
- Freezing the business rates multiplier for small businesses for a fourth consecutive year, saving an average shop £1,650. A million British businesses will benefit from this, meaning an independent shop not benefitting from existing reliefs, with a rateable value of £50,000, will see savings of £1,650 next year.
- Extending the Retail, Hospital and Leisure (RHL) relief meaning 230,000 properties will benefit from almost £2.4 billion in support, protecting small businesses in our high streets and town centres. This means that:
- A typical independent pub with a rateable value of £31,600 will get around £11,800 off their final business rates bill. Combined with the small business multiplier being frozen, they would benefit from £12,800 of support.
- A typical independent café with a rateable value of £15,000 will get around £5,700 off their final business rates bill. Combined with the small business multiplier being frozen, they would benefit from £6,200 of support.
- A typical independent cinema with a rateable value of £173,800 will get around £71,200 off their final business rates bill.
The Prime Minister made a promise to people across the UK that taxes would be cut when inflation was falling and that is what this Conservative Government has delivered.
People across Uxbridge and South Ruislip will have their taxes cut thanks to the Conservative Government’s long-term decisions for a stronger economy. This means people get to keep more of their hard-earned money, ensuring work always pays off under a Conservative Government.
Commenting, Chancellor of the Exchequer Jeremy Hunt MP said:
“With inflation falling, and global economic conditions stabilising, we are now able to turn our attention to the long-term decisions required to strengthen our economy and build a brighter future. Our Autumn Statement for Growth takes those long-term decisions to reduce debt, cut tax, reward hard work and back British business right across the country. By doing so we are making huge progress in tackling the long-term economic challenges facing the UK so we can build a more dynamic economy that delivers prosperity across our United Kingdom.”