Local MP Alan Mak has welcomed the Government’s Spring Budget 2023, saying that it backs working people across the Havant Constituency and the UK with support for cost of living challenges, a free to fuel duty and new funding for more childcare.
The Budget supports families across the country who are continuing to face cost of living pressures driven by high inflation. The Chancellor announced that thanks to the Government's actions, inflation is forecast to fall by more than half its current rate by the end of the year, bringing living costs down. The Government's Energy Price Guarantee was also renewed for a further three months. Fuel duty has also been frozen for a thirteenth consecutive year, saving the average driver around £200 per year.
Businesses across the Havant Constituency will also benefit from a new tax cut which sees the Government offering 100 per cent first year relief on new qualifying investments in main rate plant and machinery from 1 April 2023 until 31 March 2026. For every pound a company invests, their taxes are being cut by up to 25p. The UK will also continue to have the lowest Corporation Tax rate in the G7, incentivising investment and boosting growth.
The annual pension allowance will be increased from £40,000 to £60,000 and the lifetime allowance will be abolished. The Government is also introducing 30 hours of free childcare per week for children from 9 months to 4 years old, worth £6500 per year per child from 2025, which will allow parents to take up more work and boost the local economy.
Among the key announcements were:
- Extending 30 hours of childcare a week to working parents of children aged 9 months to 4 years
- Paying Universal Credit childcare costs up front rather than in arrears
- Introducing reforms to the childcare sector including changes to 2-year-old staff:child ratios from 1:4 to 1:5
- Introducing a £25 billion three-year tax cut for business investment
- Increasing the annual pension allowance to £60,000 and abolishing the Lifetime Allowance
- Establishing a new Universal Support programme for disabled people and the long-term sick
- Abolishing the Work Capability Assessment and increasing the Administrative Earning Threshold to 18 hours
- Extending the Energy Price Guarantee at £2,500 for three months
- Freezing fuel duty for a thirteenth year, saving the average driver around £200
- Delivering a Brexit Pub Guarantee so draught duty will always be less than duty in supermarkets
Local MP Alan Mak said: “Fuel duty remains frozen, Government support for energy bills has been extended, the tax free pension allowance has been increased and there’s new funding for more childcare helping working parents. This is all great news for residents across the Havant Constituency and the country.”
He added, “The Budget backs working people, communities and businesses across the Havant Constituency and the UK. Our economy is recovering after the pandemic, and with Havant part of the new Solent Freeport and businesses like BioPure creating new local jobs there, the outlook is positive for our community.”
