Clwyd West MP, David Jones, has commended Chancellor Kwasi Kwarteng’s “mini-budget” for laying out the conditions needed to restore economic growth in the wake of the Covid pandemic and the increase in the cost of living sparked by Putin’s war in Ukraine.
David Jones said:
“The Chancellor has quite rightly decided to support economic growth across the UK, while reducing the tax and utilities burdens for ordinary families.
“The cap on energy prices, coupled with the support payments, will provide consumers with the reassurance they need that it will not be unaffordable for them to keep warm over the coming winter.
“The reversal of the 1.25% increase in National Insurance contributions will save the average worker around £330 over the next tax year. Similarly, it is extremely good news that the basic rate of income tax will be cut to 19% from April next year.
“Local businesses will also be pleased that the employer’s National Insurance contribution increase is to be reversed, and will be relieved that corporation tax will remain at the current, internationally-competitive rate of 19%. Setting the annual investment allowance at £1 million will encourage more companies to increase capital investment in their own businesses.
“The cut in Stamp Duty is highly welcome. It will make it easier for people to buy their own homes and will support the housing market. Stamp duty is a tax that is hard to defend, and I hope there will be further cuts in the future. Sadly, however, this is an England-only measure and the Welsh Government should immediately follow suit by cutting Land Transaction Tax in Wales.
“The announcement of new Investment Zones, with streamlined planning processes and tax benefits will be widely welcomed. This is a UK-wide policy, but requires the cooperation of the Welsh Government in Wales. Again, the Welsh Government should immediately announce that they will be working closely with HM Treasury to ensure that Wales sees the benefits of the policy and is not left behind.
“At a time when the global economy is still feeling the impact of the coronavirus pandemic and the massive rise in energy prices triggered by Putin’s aggression in Ukraine, the Chancellor is to be applauded for his bold decision to go for growth in the UK and to continue to support ordinary families through these difficult times.”