James Brokenshire has welcomed the measures set out in the Chancellor’s Budget Statement in which he announced a further increase in the Personal Tax Allowance, changes designed to support savers and young people and additional help for small businesses.
In this week’s Budget, the Chancellor announced that the personal allowance – set to reach £11,000 from April this year – will rise again to £11,500 from April 2017, meaning a typical basic rate taxpayer will be paying over £1,000 less income tax than when the Government came to office in 2010. As a result of these changes, over 31 million people will see their income tax cut compared to this year, while 1.3 million of the lowest paid will be taken out of income tax altogether.
In addition, the threshold for 100% relief on business rates for small firms is to rise from £6,000 to £12,000 and the higher rate from £18,000 to £51,000, reducing the business rates bill of 250,000 businesses and exempting a further 600,000 firms from paying any business rates at all.
In a show of support for young savers, the Chancellor also announced the launch of the new “lifetime” ISA, with Government putting in £1 for every £4 saved by people under the age of 40. Those who save a maximum of £4,000 towards a home deposit or retirement will get £1,000 top up from the Government every year until they turn 50.
Commenting following the Chancellor’s statement, James said:
“In this Budget, the Chancellor has shown his support for workers, savers and small businesses. Despite a tough global outlook, the Government continues to work to place the country’s finances on a sure footing and these measures will further help to reward hard work and encourage Britain’s business owners and entrepreneurs.”
“The Budget also recognises the challenges many young people face in saving for a home of their own and later life and I welcome the new lifetime ISA as a positive means of encouraging saving.”
For full details of the Budget click here: https://www.gov.uk/government/publications/budget-2016-documents/budget-2016