Budget 2024 and Investment Special

The last few years have not been easy for the British economy. Together we have faced the covid pandemic and its legacy, and more recently the consequences of the war in Ukraine on fuel prices. These challenges have made life more difficult for everyone.

In 2023 the Government announced five priorities, three of which were economic. To halve inflation, grow the economy and reduce debt. In 2024 we are making good progress.

• Inflation has fallen from 11% to 4% and will fall further;
• The economy has performed better than forecast and is growing once more;
• Wages are rising, the living wage and pensions are about to rise significantly;
• The British economy has outperformed our European neighbours, France, Germany and Italy;
• Debt is on track to fall as a share of the economy.

As always, there is much still to do. However, progress has been made and our plan continues to make work pay and improve the economy.

In summary, Budget 2024 will

• Cut taxes for 27 million working people from April, by again cutting the main rate of National Insurance contributions from 10% to 8%. That’s in addition to the 2% cut at the Autumn Statement 2023. This gives the average earner the lowest effective personal tax rate since 1975.
• Cut taxes for 2 million self-employed people by cutting the main rate of class 4 NI contributions from 9% to 6%. This is in addition to the 1% cut announced in the Autumn statement 2023.
• 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changes to the high-income child benefit charge by raising the threshold and halving the rate at which Child Benefit is withdrawn.
• Increase the state pension by 8.5%;
• Freeze alcohol duty, alleviating pressures on the hospitality sector;
• Maintain the freeze on fuel for the 14th consecutive year, thereby helping to keep motoring costs down;
• Cut Capital Gains Tax on residential property sales;
• Increase the VAT registration threshold for small business to £90,000;
• Support and reform the NHS with an additional £2.45billion for next year and a new £3.4billion productivity plan. This will help improve productivity, so clinicians have more time to focus on patients and cut waiting times.
• Introduce a new duty on vapes protecting young people and children from the harm vaping brings;
• Reform our tax system so that those with the broadest shoulders contribute a bit more.

In addition, the North East has been granted a trailblazer devolution deal with £100m additional funding to help with investment in education and housing. Three areas in Buckinghamshire, Warwick and Surrey have been offered devolution deals and there are more scheduled for 2025 in Suffolk, Norfolk, Greater Lincolnshire. Hull and East Yorkshire, Lancashire and Cornwall.

Cumbria remains left behind as the political leadership at both Cumberland and Westmorland and Furness Councils refuse to embrace full devolution.

This is not acceptable. Cumbria and its residents are losing out on a deal worth millions of pounds to the county. It is also missing out having a strong voice to lead and promote Cumbria. A devolution deal with an elected and accountable mayor is the only way forward for Cumbria. I will continue to call for this locally and nationally.

I support the budget and am keen to see the Government stick to the plan to deliver a strong economy which will help and support everyone.

As for Carlisle, in the last month we have welcomed £148m of reallocated HS2 funding to Cumberland to invest in local transport priorities.

In addition, a further £3,005,600 was announced for Cumberland Council by the Government to be used to fix potholes. The total indicative additional funding for 23/24 to 33/34 is £130,180,000.

Just this week, Government has also allocated just under £400,000 to Carlisle Truck Stop and for improvements to sports facilities in Bitts Park, Rickerby Park and Gillford Park.

If we look at projects such as the Carlisle Railway Station, the city centre improvements, Tullie renovation works, the Southern Link Road, the Citadels project, flood defences, the MoD facility at Longtown and more, the total amount of money being invested in Carlisle by this Conservative Government is now in excess of £650 million.

It is easy to make critical comments, but a plan for the growth and success of Carlisle and the surrounding areas is a plan I like, and one that I have confidence in and will be sticking to.

A record of achievement and a promise of more.

Yours sincerely

John Stevenson
Member of Parliament for Carlisle