How we use Cookies

Dominic Grieve MP: WE have to earn our way out of debt

When the Chancellor of the Exchequer stood up to present his Budget, we already knew that the fundamental work to deal with Britain’s debts remains a priority.

When the Chancellor of the Exchequer stood up to present his Budget, we already knew that the fundamental work to deal with Britain’s debts remains a priority. Under the previous government, this country borrowed itself into trouble. Now we have to earn our way out.

The Budget backs business – from the innovative, research-based, high technology companies, looking to export and become world-beaters, to the small business starting out with one or two people working in it. However, it is not just about commerce. It is also about people who aspire to do better for themselves and their families.

There are plans to reduce corporation tax for businesses which are designed to make Britain competitive with the major industrialised nations across the globe. But there is also the largest ever increase in the personal tax allowance. Across the UK, that will benefit 24 million families. In the South East, 3.3 million individuals will benefit. The personal allowance increase to £9.205 will lift 244,000 people living in the South East out of income tax altogether.

The goal is to lift the personal allowance so that people earning £10,000 will not pay tax.

Child Benefit will remain in full for all families with wage earners on £50,000 or less. It is right that better-off families should contribute to reducing the deficit. There should not be a “cliff edge” between receiving child benefit and not receiving it, so the withdrawal will be gradual. Overall, 90 per cent of families will qualify to receive child benefit.

The Chancellor pointed out that the top rate of income tax is not to be reduced while the public sector is in a pay freeze and so there will be no change until 2013. Meanwhile, there are measures to reform and simplify the income tax system. That includes plans for taxpayers to receive a Personal Tax Statement. This would set out in detail what income tax and national insurance payments they have paid – and how this contributes to public spending.

 
comments powered by Disqus

Journalists

Mort Smith
Community Editor
Jack Abell
Reporter (Gerrards Cross, Denham and Iver)
Camilla Goodman
Reporter (Chesham and surrounding villages)
Laura Mowat
Reporter (Amersham, Little Chalfont)
Lorcan Lovett
Reporter (Chalfont St Peter, Chalfont St Giles, Great Missenden and Prestwood)
Jo-Anne Rowney
Reporter (Beaconsfield, Stoke Poges, Seer Green and Jordans, Hedgerley, Fulmer and Farnham Common)
Full newsroom contact details
Get in touch if you want to tell us about something happening in your area