This afternoon in Parliament, the Chancellor delivered a budget to fund world-class public services, back business and help working families with the cost of living.
As Secretary of State for Work & Pensions, I’ve been working closely with the Chancellor on key elements of the Budget – including reducing the Universal Credit taper rate from 63% to 55% – making work pay. This is a £2bn tax cut for the lowest-paid workers in the country. Rewarding work and helping with the cost of living.
The Budget will continue to help working families and support vulnerable households by:
Raising the National Living Wage by 6.6% to £9.50, giving a £1,000 pay rise to 2m of the lowest paid.
Increasing pay for public sector workers following a period of more targeted pay.
Freezing fuel duty for the twelfth year in a row, a £1.5 billion tax cut for motorists.
Freezing alcohol duty and radically reforming the system to make it simpler, fairer and healthier.
Cutting beer duty by 3 pence in a pint in a pub through our new Draught Relief.
Creating a new half price rate of Air Passenger Duty for domestic flights within the United Kingdom.
The Budget also backs businesses by:
Cutting business rates by 50% next year for 90% of retail, hospitality and leisure, and freezing all rates.
Creating a new business rates green growth tax relief and extending the Annual Investment Allowance.
Reforming our tonnage tax so British merchant ships are rewarded for flying the Union Jack.
Doubling creative industries tax reliefs for our world-leading theatres, orchestras, museums and galleries.
The Budget also drives economic growth by investing in infrastructure, innovation and skills.
The Office of Budget Responsibility has also said that our recovery from the pandemic will be stronger than expected – with growth revised up and unemployment down.