Local families in Burnley and Padiham will soon have more money in their pockets after the Chancellor delivered the Government’s new ‘Growth Plan’ today [23rd Sept].
Under the plans a package of energy bill support has been confirmed alongside sweeping tax cuts intended to boost economic growth by putting money back into people’s pockets.
Welcoming the mini budget Antony Higginbotham MP said:
Today’s announcement will get Britain - including our borough - firing on all cylinders again. And after some of the largest economic shocks in generations as a result of Covid and war, it’s time to be bold.
That’s why this unapologetic focus on growth and household income is so welcome for us locally. Cutting income tax and national insurance, and capping energy is worth thousands to hard working families across Burnley and Padiham, and is exactly what’s needed to put money in people’s pockets.
But growth has to deliver jobs and business investment. That’s how we turbocharge our borough. It was fantastic to see measures announced that will incentivise job creation and business expansion, and that Lancashire is earmarked as a potential investment zone.
This all requires lowering the tax burden so our economy can grow, and the pie can get bigger. Spurring on enterprise, innovation, and job creation.
Families across the borough will see their energy bills cut by up to £1,400 through the Energy Price Guarantee, whilst businesses eligible for The Energy Bill Relief Scheme will have their energy bills slashed by cutting the price of wholesale gas.
People will also benefit from personal tax cuts, with a cut in National Insurance contributions by 1.25 per cent and a reduction in Income tax due in 2023.
Alongside these measures the Government announced further personal tax cuts – including cutting stamp duty permanently by doubling the nil-rate band to £250,000 (from £125,000), increasing the nil-rate band for first time buyers to £425,000 (from £300,000) and increasing the value of the property which first-time buyers can claim relief to £625,000 from (£500,000).
These measures combined mean a typical family moving into a semi-detached property will save £2,500 on stamp duty and £1,150 on energy bills – and if they have a combined income of £50,000 around an additional £560 on tax. This is around £4,200 in total.
The Government’s Growth Plan also unleashes 38 Investment Zones across England, unlocking housing and driving growth through tax incentives – with the North West set to benefit with 6 out of the 38.
The measures are intended to unleash growth by cutting taxes further, tackling the immediate energy crisis and removing unnecessary barriers for local business.
Commenting, The Chancellor of the Exchequer said:
Growth is not as high as it should be. This has made it harder to pay for public services, requiring taxes to rise and cost of living pressures to increase.
We need to change this and be unashamed in our Growth Plan – expanding the supply side of the economy, through tax incentives and reform, whilst we help families now by cutting their energy bills by £1,400 a year and slashing personal taxes.
That is how we will deliver higher wages, greater opportunities, and crucially, fund public services, now and into the future.
