Therese has welcomed today's Budget as another step on the road to prosperity for Suffolk and for Britain.
Therese said: "The Budget will continue the national recovery, cutting taxes, helping first time buyers, aiding farmers, assisting pensioners and supporting savers. Five years ago, Britain was spending and borrowing too much and too many people were out of work. Living standards are now higher than when this Government came into office, with more people in work than ever before."
Therese added: "The big news from today was the rise in the personal allowance – cutting taxes for 27 million people, a tax cut for savers and help for first time buyers. House prices in Suffolk Coastal are some of the highest in the county so the new Help to Buy ISA will be real help for them. The Chancellor has also committed to continuing to freeze fuel duty, £10 off a tank under the Tories, whilst taking a penny off a pint of beer for the third year in a row".
"There was important help for our farmers with measures to extend the period they can average their profits for income tax purposes from 2 to 5 years. There was also very welcome news for our local air ambulance – as £1.7m of banking fines were pledged to purchase a new East of England air ambulance. There was also a doubling of resources to UKTI to support British firms exporting to China, important for the Port of Felixstowe."
Please see below for a summary of the main measures announced today, which I hope you will find helpful:
The Personal Allowance will rise to £10,800 next year and £11,000 the year after, with the benefit also passed on to higher rate tax payers. It means the typical working taxpayer will be over £900 a year better off and 3.7 million people won't pay any tax at all. This is a down payment on our commitment to raise the personal allowance to £12,500.
- A new Personal Savings Allowance to abolish taxes for 17 million savers. From next year the first £1,000 of the interest basic rate taxpayers earn on savings will be completely tax free – taking around 95% of people out of savings tax altogether.
- Help to Buy ISA to help first time buyers. This new ISA will mean for every £200 a first time buyer saves, the Government will give a bonus of £50 up to £3,000.
- From the autumn, people will have complete freedom to take money out of an ISA and put it back in later in the year without losing their tax-free entitlement.
- Extend new pension freedoms to the 5 million pensioners who already have an annuity – meaning pensioners will be able to sell their annuity income in return for a lump sum.
- A rise in the Minimum Wage to £6.70ph.
- Abolishing the annual tax return to make the tax system simpler.
- Supporting farmers by extending the average period self-employed farmers can average their profits for income tax purposes from 2 to 5 years.
- Penny off your pint – Beer duty will be will be cut for the third year in a row. Cider duty cut by 2% and Scotch whisky by 2%.
- Fuel duty has again been frozen, cancelling the planned duty escalator under Labour, which would have seen a September increase. That's £10 off a tank with the Tories.
- Doubling resources to UKTI to support British firms exporting to China, important for the Port of Felixstowe.
- Increasing the bank levy by £900m whilst stopping banks from deducting from corporation tax the compensation they make to customers for products they miss sold.
- Using banking fine to help good causes including £1.7m to the East of England Air Ambulance.
- A trebling of the £15m church roof fund.