Conservative candidate Resham Kotecha has congratulated the Chancellor on a budget which points to a brighter future in Dulwich and West Norwood and across the UK. It marks the end of 5 years of hard work in which Britain has gone from suffering one of the biggest economic collapses in the western world, to being well on the road to a sustainable and prosperous future.
“Led by the Chancellor, the Conservative-led Government has done a brilliant job beginning the task of rebuilding our economy. Across the country employment is now at record levels, and in Dulwich and West Norwood unemployment is down by 44% since 2010, meaning 1,769 more people have the security of a job. Thanks to low inflation, higher wages and an increase in the income tax personal allowance, the average family is now £900 a year better off than in 2010.”
“As an economist I am delighted by the measures to support savers, particularly the Help to Buy ISA which will really help people in Dulwich & West Norwood who want to buy their first house. It recognises the long-term economic benefits provided by saving and investment, and helps people save at all stages of life.”
“However, the good news in today's budget is only possible because we have a long-term economic plan. Our recovery is still fragile, and there's more work to do to ensure everybody benefits. It is the worst possible time to go back to Labour's plan of borrowing, debt and disaster.”
Key points from today's budget for those living in Dulwich and West Norwood are as follows:
- A ‘post-austerity’ growing economy all the way to prosperity – the forecast of GDP for this year has been revised upwards to 2.5%, giving Britain the 2nd strongest growth of all G7 members after the USA.
- A budget that works for you – an increase in the personal tax free allowance to £10,800 next year and £11,000 in 2017 (+3.8%); taking many lower paid and part-time working people out of tax altogether and providing an extra £200 for 24 million basic-rate taxpayers. The lower paid 50% of earners now pay a smaller proportion of income tax than at any period under the previous government; the highest paid, 1% of the population now pay 27% of all income tax, up from 25% in 2010.
- Rewarding hard-working middle earners – the threshold for the upper 40% tax band increases above inflation from £42,385 to £43,300 which benefits lots of hard working families in our constituency.
- Getting Britain back to work – employment is now at record levels – 102,000 more people were in work in the 3 months to January and the jobless rate has fallen to 5.3%; apprenticeships have doubled – 2 million this year and 3 million in 2016; the trade deficit figures are “the best for 15 years”. We will also see the minimum wage rise by 3% and apprentice pay rise by 20%- a great way to reward people and ensure work always pays.
- A savings revolution – recognising the long-term value to the economy that comes from savings and investment, a new personal savings allowance will be introduced whereby the first £1,000 earned is tax-free [£500 for higher rate taxpayers] – removing 90% of savers from taxation; people will be given the freedom to choose how they use their pension savings.
- Help for first-time home buyers – the Help to Buy ISA will offer the chance to first-time buyers to save tax-free, like a pension, towards a deposit on a house, ensuring long-term saving is rewarded at all stages of life. This tax relief means that saving £200 gets topped up to £250 meaning people saving £12,000 will get £15,000 after the Government’s contribution.
- Supporting small business owners – Class 2 National Insurance contributions will be abolished for all the self-employed, and the annual tax return will cease to exist, helping small business owners to concentrate on running their business. Corporation tax will be reduced to 20% ensuring Britain’s businesses can compete globally.