Worcester MP Robin Walker has welcomed the Chancellor’s Autumn Statement which cuts taxes for households and job creators, increases the National Living Wage, and boosts pensions.
The Autumn Statement 2023 set out the biggest package of tax cuts to be implemented at a fiscal event since the 1980s, while at the same time getting inflation falling and borrowing lower. Taxes will be lower for 27 million working people from January when a cut in the main rate of National Insurance contributions from 12 to 10 per cent comes into force. This will lead to an increase in income for Worcester households, with the average worker earning £35,000 a year receiving a tax cut of £450. The national living wage will also increase to a record £11.40 for over-21s, meaning a full-time worker on the NLW will see their pay increase by over £1,800.
The Government is also continuing to support the most vulnerable as all working-age benefits will be increased in full by 6.7 per cent, boosting the incomes of 5.5 million households who receive Universal Credit by an average of £470 a year. In line with the Triple Lock, pensions will be boosted by 8.5 per cent, ensuring dignity in older age for those who have worked their entire lives.
Robin welcomed the support for businesses, with the government freezing the business rates multiplier for small businesses for a fourth consecutive year, saving an average shop £1,650. Pubs and bars will also benefit from a continued freeze on the rate of duty on beer and cider.
However, Robin urged the Chancellor to ensure that the increase in the National Living Wage wouldn’t have an adverse impact on the provision of high needs education and early years settings. Responding to the Autumn Statement in the House of Commons, Robin said:
“I welcome the Chancellor’s comment that a world-class education is essential for economic growth, and there are many measures to welcome, including the extra funding for the Holocaust Educational Trust, the £50 million for apprenticeships and the tax cuts of more than £600 for teachers.
“Of course, many people working in education will also welcome the nearly 10% increase in the national living wage, but it will put great pressure on schools employing teaching assistants and on our nurseries, which we are so keen to expand and support. Can I urge the Chancellor to engage closely with the sector and with the Department for Education to make sure that we can meet those pressures when it comes to funding high needs in our schools and to growing the early years sector?”