NEW FINANCIAL YEAR As I wrote about in last week’s Herald, this month marks the introduction of some of the key budget and autumn statement measures. One of the most widely-felt of these measures is the further 2% cut to National Insurance, on top of the 2% cut that started in January, which together mean that 27 million workers save £900 in tax this year. Many wonder why I chose National Insurance rather than income tax. The answer is that it helps grow the economy, leading to the equivalent of 200,000 more people in work or filling one in five vacancies across the country. Growth is how we pay for things like the triple lock, which means pensioners will also (coincidentally) get a £900 increase in their pension. For the lowest paid, the increase to the National Living Wage to £11.44 starts. Someone working full time has seen their after tax pay go up by 35% since 2010, one of the reasons unemployment - despite the pandemic and energy crisis - has halved. And to help families, there is an increase in the threshold at which child benefit will begin to be withdrawn to £60,000, saving nearly half a million families an average of £1300. The overall picture? Taxes have gone up to pay for the pandemic but I have been able to bring in tax cuts that pay back around half the increases - and if we stick to my plan I hope to bring them down more. Why? Because countries with lower taxes tend to grow faster and in the end it is economic growth that will pay for pensions, the NHS, the armed forces and all the other things we need to fund.
CHILDCARE Just over a year ago I announced the largest ever expansion to childcare in my lifetime, and the extra free hours are beginning to be rolled out this month. We hit our target to have 150,000 more children benefiting from free childcare hours this week, which I know will also make a huge difference to families locally where the cost of living is particularly high. Labour has been flipflopping on whether they will commit to our childcare plans - but given that they will help 60,000 families into work they should get behind them as I say in this video.
GLOBAL SECURITY Last weekend marked the grim 6 month anniversary of the October 7th attacks. It was the most appalling terrorist attack in Israel’s history but little progress has been made with hostages still held by Hamas and numerous civilian casualties. Foreign Secretary David Cameron wrote thoughtfully over the weekend about what needs to happen to break the stalemate - and what the UK is doing to ensure that more aid gets into Palestine. He is now in the US where he is hoping to make progress on that - and persuade Congress to unblock aid to Ukraine. I have always believed the world is safer with a strong America but we should never underestimate the isolationism that has always run through US politics.
LONDON MARATHON With just over a week to go, I am juggling Treasury, constituency and family life - the topic of my Herald column this week - and now running the mini-Marathon the day before with my daughters (luckily only 2.6k). A massive thank you to the wonderful people who have generously donated so far on my Just Giving page towards the new Royal Surrey Cancer and Surgical Innovation Centre - a great cause! And if you haven’t quite managed to do so yet, there is still time to make a donation, however small, via the link here. Don't forget to tick the Gift Aid box if you are a UK taxpayer - it costs you nothing and makes a huge difference.
|