Havant MP Alan Mak has welcomed the 2015 Summer Budget, especially the further income tax cuts for hardworking people in Havant, delivering on the Conservatives’ key election promise to raise the personal allowance.
He also welcomed the government’s commitment to meet the NATO target of spending 2% of national income on defence every year this decade.
In the Summer Budget, the Chancellor George Osborne set out the next steps in his plan to support working people by ensuring they keep more of the money they earn:
· A downpayment on a £12,500 Personal Allowance: in 2016-17, the personal tax-free allowance will increase by £400 to £11,000, so that next year a typical rate income taxpayer will be £905 better off compared with 2010. This is part of our commitment to raise the allowance to £12,500 by the end of the Parliament.
The rise in the personal allowance will mean lower taxes for around 45,299 working people across Havant, with an estimated 769 people taken out of income tax altogether.
· Delivering on our promise to raise the higher rate threshold: in 2016-17, the threshold for the higher rate of tax will increase from £42,385 to £43,000, saving the typical higher rate taxpayer £142 and lifting 130,000 people out of the rate altogether. This is a first step on our commitment to raise the threshold to £50,000 by the end of the Parliament.
The Summer Budget also introduced a new National Living Wage for over 25s to support people who work hard and do the right thing. The new National Living Wage will mean two and a half million people get a direct pay rise. Those currently on the minimum wage will see their pay rise by over a third this Parliament, a cash increase for a full time worker of over £5,000.
Havant Alan Mak MP said, “The new National Living Wage combined with these income tax cuts are excellent news for hardworking people in Havant, and shows we will deliver what we promised.
“The rise in the personal allowance will mean lower taxes for around 45,299 working people here in Havant, with an estimated 769 people taken out of income tax altogether.”
“The rise in the 40p threshold will also mean fewer people in Havant will now pay the 40p rate of tax. That means local people keeping more of the money they’ve worked hard to earn, giving them and their families more financial security for the future.”
“The commitment to meet the NATO target of spending 2% of national income on defence every year this decade is great news for our country. Our strong economic plan is delivering national security for all.”
Alan Mak MP added, “This is a strong budget that secures a better future for Havant and the country. We need a low-tax, low-welfare economy that gives working people financial security because events in Greece show what happens when a country fails to get its economic house in order.”
“This Budget helps Havant’s working people, families and businesses. Havant is on the rise, with Solent Retail Park and Langstone Technology Park booming, and ambitious plans for Market Parade and Dunsbury Hill Farm.”
“We’ve cut income tax, frozen fuel duty, helped businesses and invested in our national security. This is a Budget for people who want to get on in life, not just get by.”
Alan Mak MP has also written an article for leading business newspaper CityAM about the Summer Budget 2015 and its role in helping boost social mobility in Britain and the country's economic competitiveness abroad - "Building the Opportunity Society is critical to Britain's competitiveness":