Yesterday in Parliament, the Chancellor delivered the Budget. He outlined how the economy is in a better shape than forecast, that we no longer need to borrow for day to day spending - and that thanks to the careful stewardship of the economy there are more people working than ever before.
The economy is forecast to continue to grow - enabling us to deliver our election manifesto pledge one year early in allowing more people to keep more of their money - as well as increasing investment in the NHS and other public services.
The main Budget measures include:
- Overall investment in public services will increase in real terms over the next five years.
- Funding the Prime Minister's NHS commitment. We have fully-funded the cash settlement that was set out in June – which equates to £20.5 billion more in real terms by 2023-24.
- Fulfilling our promises on income tax one year early, so people keep more of what they earn. We will raise the Personal Allowance to £12,500 and Higher Rate Threshold to £50,000 one year early, saving a typical basic rate taxpayer £130 compared to 2018-19 and £1,205 compared to 2010-11.
- Supporting our councils with an additional £1 billion of funding. We will support councils with £650 million for social care, £84 million for children's social care programmes over five years and £420 million for potholes this year.
- Backing high streets by cutting business rates by a third for two years. Rates will be cut by a third for retailers with rateable value under £51,000, saving up to 90 per cent of all shops up to £8,000 each year.
- Investing an additional £1.7 billion per year to benefit working families on Universal Credit. We will increase the work allowance – the amount families can earn before losing benefits – by £1,000, worth £630 per year to those households.
- Freezing fuel duty for the ninth year, saving the average car driver a cumulative £1,000 by April 2010.
- Freezing beer, cider and spirits duty for another year, supporting patrons of the Great British pub.