On Friday, the Government delivered The Growth Plan – setting out support for families with their energy bills and unleashing a new era of growth through tax cuts and investment incentives.
In addition to the cut to National Insurance contributions by 1.25 per cent, putting an extra £330 a year in people’s pockets and helping them with cost-of-living pressures, the government announced further personal cuts including cutting the basic rate of income tax to 19p for 31 million people from April 2023 and cutting stamp duty permanently by doubling the nil-rate band to £250,000 (from £125,000), increasing the nil-rate band for first time buyers to £425,000 (from £300,000) and increasing the value of the property which first-time buyers can claim relief to £625,000 from (£500,000).
These measures combined mean a typical family moving into a semi-detached property will save £2,500 on stamp duty and £1,150 on energy bills – and if they have a combined income of £50,000 around an additional £560 on tax. This is around £4,200 in total.
Families will also have their energy bills cut by up to £1,400 through the Energy Price Guarantee, whilst businesses eligible for The Energy Bill Relief Scheme will have their energy bills slashed by cutting the price of wholesale gas.
Commenting, Richard Fuller MP said:
The Growth Statement by the Chancellor today was a strong combination of help for families and businesses with rising energy bills, reductions in the burdens of taxation and steps to remove or simplify many of the impediments to growth.
Support for people when they need it. Opportunity for people when they are ready to take it.
