Chancellor Jeremy Hunt has presented the government's autumn budget, outlining key tax and spending measures, along with economic forecasts and new devolved powers for Surrey.
One of the headline announcements outlined by the South West Surrey MP in the House of Commons on Wednesday afternoon was the reduction in National Insurance paid by employees from 12 per cent to 10 per cent, set to take effect from January 6.
Currently applied to earnings between £12,571 and £50,271 at a rate of 12 per cent, with an additional two per cent on income beyond that threshold, the cut aims to put more money back into the pockets of working individuals.
However, not everyone is convinced of the budget's merits. The Labour Party contends that the tax cut fails to adequately offset existing hikes, expressing scepticism about its impact on the financial well-being of citizens.
Economic forecasts also took centre stage in Mr Hunt's statement, revealing a revised growth projection. The economy is now expected to grow at a slower rate than previously thought, with a forecast of 0.7 per cent for the next year, down from the earlier estimate of 1.8 per cent.
The Chancellor announced an 8.5 per cent increase in the state pension from April 2024, bringing it to £221.20 per week. This move honours the triple lock commitment, providing pensioners with a boost in their income.
In line with September's inflation rate, universal credit and disability benefits will see a 6.7 per cent increase. However, the decision to tie the adjustment to September's rate rather than the lower October rate has generated discussions about the government's approach to benefit calculations.
The budget also includes measures aimed at encouraging welfare recipients to find employment. Individuals who fail to secure a job within 18 months will be required to undertake work experience. Furthermore, those who neglect to actively search for employment over a six-month period may face the cessation of their benefits, marking a shift in the government's stance on welfare participation.
Mr Hunt's budget statement also made permanent a tax break for businesses, allowing them to save on corporation tax through strategic investments. This move is expected to stimulate business activity and contribute to the overall economic recovery.
A headline for Surrey was the announcement of a 'County Deal' devolution agreement for Surrey. This will see the devolution of the adult education budget, alongside new powers over economic development, transport and housing in the county.
