By getting spending under control, we’ve delivered our promise to halve inflation. That means prices are now stabilising — and families and businesses can look forward to more certainty.
Because we’ve halved inflation, we can afford to support families and businesses with the cost of living — and help you keep more of your own money.
In January, we’re cutting the main rate of National Insurance Contributions from 12% to 10%, delivering a tax cut of £450 a year for the average worker earning £35,000.
We’re cutting and simplifying taxes for 2 million self-employed people. We’re getting rid of Class 2 National Insurance Contributions entirely, and cutting Class 4 contributions from 9% to 8%. That’s a £350 tax cut for someone earning £28,000 a year.
The National Living Wage has received the largest ever cash increase, at £11.44 an hour. That’s an extra £1,800 a year for workers. Helping more people get on in life.
Our Triple Lock guarantee means that we can ensure dignity in old age for those who’ve worked their entire lives. This means the basic state pension will be £3,750 higher than in 2010.
A hardworking family with two earners on average incomes will be £900 better off
A senior nurse with five years of experience will be £600 better off
The average police officer will be over £630 better off
The typical junior doctor will be over £750 better off
The typical self-employed plumber will be over £410 better off
The typical teacher will be over £630 better off
Businesses are the backbone of Britain, fuelling our economy and creating good jobs with decent wages.
This is the BIGGEST business tax cut in modern British history. That means businesses will be able to afford to invest more in British workers, grow their businesses and fuel our economy.
By freezing the small business multiplier yet again, we’re helping the average shop save £1,650. That’s a big boost to the high street. And we’re topping it off by extending the Retail Hospitality and Leisure Relief for a year.
Instead of increasing alcohol duty to keep it in line with inflation, we’re FREEZING alcohol duty to help pubs, restaurants and hospitality businesses stay competitive and continue to thrive.
We want to make sure that everyone who can go to work does go to work.
So we’re toughening sanctions on people not looking for work — including mandatory work placements for those who’ve finished training.
But we’re also supporting those who want to work — investing extra funds in Jobcentres so they can provide the help that the long-term unemployed need.
Our plan to get debt falling by the end of the five-year forecast is set to be met.
The independent Office for Budget Responsibility says that borrowing is forecast to be lower this year, and set to fall from 5% of GDP last year to 1.1% of GDP by 2028-29. That will be its lowest level in over 20 years
The independent Office for Budget Responsibility says that our package as a whole means inflation is forecast to be lower next year than they previously thought. Helping to stabilise prices and give families and businesses more certainty.