Spring Budget Update

16th March 2017

Henry welcomes the Chancellor’s reversal of NI changes

Following on from Henry’s earlier statement on Friday 10th March, when he said he was very unhappy about the proposal to increase the self-employed National Insurance taxes. He really welcomed the Chancellor’s swift change of tact.

Commenting Henry said; “Indeed, there is nothing wrong with an open, honest and ultimately sensible change of plan. I do believe that it reflects very well on the Chancellor and Prime Minister that they decided to get a grip of this pretty well immediately without letting it drag on through the summer and into the autumn.

10th March 2017

Henry Welcomes the Chancellor’s Spring Budget

Henry welcomed the Chancellor’s Budget on Wednesday 8th March following the announcement that the Government have committed to invest more in technical education. Commenting Henry said; “Once this programme is fully rolled out, we will be investing an additional £500 million a year in our 16-19 year olds, in particular I welcome the new T Levels which will over a period of time will give technology qualifications the same kudos and weight as A Levels. This will give them the technical skills they need to succeed in the world of work, and give businesses the edge they need to compete in a new, global Britain.”

Yesterday's Budget also included measures to help working families with the cost of living. Last year a pay rise was delivered to a million of the lowest paid with the National Living Wage, which will rise again to £7.50 in April – an income boost of over £500 for a full time worker this year.

The personal allowance will also rise for the seventh year in a row, going up to £12,500, thus benefitting 29 million people and meaning a typical basic rate taxpayer will pay a full £1,000 less income tax than in 2010. The higher rate threshold will rise to £45,000, and savers will have access to the new NS&I bond announced at the Autumn Statement.

And the Universal Credit taper rate will be reduced from 65 per cent to 63 per cent – a tax cut for 3 million families on low incomes. 

Henry went on to say; “The Chancellor also announced that we will do more to help families with the cost of childcare. With the roll-out of our Tax-Free Childcare policy and the doubling of free childcare for working parents with three or four year olds, a young family with a three year old and both parents working will receive free childcare worth around £5,000 a year from September.”

Henry also welcomed the fact that the Chancellor has announced very significant extra funding to help solve the social care crisis across the UK. He said; “This Budget commits additional grant funding of £2 billion to social care in England over the next three years, and £400 million between Scotland, Wales and Northern Ireland, with new measures to support more joined-up working at a local level.”

However, Henry went on to register his concerns surrounding the increases to tax and National Insurance Contributions:

“For my part, I am not happy about putting any extra tax burden on either the self-employed or savers. I will certainly be talking to the Chancellor about this in order to raise my concerns. Of course I accept that this increase will be partly offset by the abolition of Class 2 National Insurance Contributions, but should we be putting any extra burden on the self-employed when they create so much wealth.”

In conclusion, Henry said it was the right Budget post-Brexit but a great shame triggering this big controversy over extra tax on the self-employed.