National Insurance and Income Tax cut helping 2 million people across East Midlands keep more of their hard-earned money
For too long growth has not been as high as it needs to be, making it harder to pay for public services. The Government is clear that this should not result in hiking taxes for hardworking families. That is why the Government has repealed the Health and Social Care Levy Act, putting £330 a year back in the pockets of workers without compromising the record funding of £39 billion for the NHS.
Reversing the Levy will mean families are not saddled with further costs to cover public expenditure, helping with the cost of living whilst delivering a health service people can rely on.
What this does is set out how families and businesses across Bassetlaw will see their National Insurance contributions reduced by 1.25 percent. This means over 2 million people across the East Midlands will keep more of the money they earn each month.
By April 2023, this cut will save the typical worker £330 per year, with an immediate saving of £135 this year. The Secretary of State for Health and Social Care confirmed that this reversal would not impact the NHS budget. This is in addition reducing the basic rate of income tax by one percent, delivering a tax cut for 31 million workers.
In other news, the Government has announced at least 38 Investment Zones across England, with Nottinghamshire in talks for one. This will help drive growth and provides tax incentives for those looking to invest. Under the Government’s Growth Plan 2022, over 100 infrastructure projects will also be accelerated. After the awarding of the STEP fusion project to Bassetlaw, I believe we would be the perfect location for one of the zones to complement the site.
In the face of rising energy prices and cost of living pressures around the world, it is right that the Government has come forward with this Growth Plan which can help people across Bassetlaw. I welcome the support set out for local people, including the cut to National Insurance, as well as other measures including cuts to Income Tax and Stamp Duty.
