Today the Chancellor will remind us in a speech that some important taxes are being cut. This is the way to promote more jobs and rising prosperity. The aim is to get more people off welfare into work, and to create the conditions for more good jobs to be created for people to improve their living standard. I repeat beneath the recent summary sent out by the Conservative party of the main tax cuts of the last Budget:
“Tax changes coming into effect this week:
- Corporation tax will be cut by 1 per cent to 21 per cent. It has fallen from 28 per cent in 2010 and will fall further to 20 per cent in April 2015, making it the lowest corporation tax rate in the G7.
- Tax on business investment virtually abolished for most businesses. The annual investment allowance will be doubled to £500,000, and will be extended by a further year to December 2015. This means 99.8 per cent of businesses could pay no tax on investment.
- Business rates reformed so that:
- The annual increase is capped at two per cent;
- The small business rates relief is extended for a further year, so that over half a million of the smallest businesses pay reduced rates and over a third of a million pay no rates at all; and
- Targeted help for the high street in the form of a £1,000 discount for retail properties takes effect, benefitting around 300,000 shops, pubs and restaurants
- Fuel duty is frozen again.
- The income tax-free personal allowance increases to £10,000. 24.5 million taxpayers will benefit, with a further quarter of a million taken out of paying income tax altogether. From April, typical basic rate taxpayers will have gained by £705 from all increases announced by this Government. Three million people on low incomes will be taken out of income tax altogether.
- Employer National Insurance Contributions will be cut by up to £2,000. This new Employment Allowance will benefit over one and a quarter million employers, over 90 per cent of them small businesses. 400,000 small businesses will no longer pay employer National Insurance at all.”
This is in addition to the savers’ package of measures which we have already discussed on this site, increasing the ISA allowance, offering new Pensioner Bonds in the next financial year and freeing savers to make their own decisions about their pension savings.