What the Summer Budget means for you and Hastings and Rye?

This afternoon the Chancellor delivered his 2015 Summer Budget. It was a bold budget for working people with commitments to; cutting taxes to ensure you keep more of what you earn, keeping the nation’s finances under control, ensuring national debt is falling, supporting our defences and boosting our productivity.

Our ambitious plans to extend high speed services to Hastings and Rye also received a special mention in the Budget document with the following commitment;

“The Department for Transport has asked the rail industry to include extending High Speed 1 services to Hastings and Rye in the forthcoming Kent Route Study. The outputs from this study will be presented to the government for consideration in 2016, with a view to this work being an option for funding after 2019.”

Some of the other measures announced in the Budget include:

  • A compulsory National Living Wage meaning a pay rise for 2.5 million workers.
  • Commitment to NATO pledge of 2% of our GDP on defence. Not just this year, but every year of this decade to fund increased spending on the military and intelligence agencies.
  • The personal tax allowance, increased to £11,000 in 2016-17 with the commitment that the allowance will always rise in line with minimum wage.
  • The launch of a ‘New Road Fund’ and reform of the road tax system will to make it fairer and sustainable, ensuring your road tax funds better roads.
  • Employment Allowance extended from £2,000 to £3,000 – cutting the jobs tax for firms meaning a firm will be able to employ 4 people full time on the new National Living Wage and pay no National Insurance at all.
  • 30 hours of free childcare from September 2017 for working families with 3 and 4 year olds, an increase from the 15 hours they’re currently offered.
  • 3 million new apprenticeships created by 2020 ensuring firms that are committed to training will be able to get back more than they put in.
  • Corporation Tax rate reduced to 19% in 2017 then 18 per cent in 2020 securing our place as the best place to do business in the world.
  • Introducing a tax free allowance of £5,000 on dividends ensuring those who either pay themselves in dividends or have large shareholdings will pay more tax.
  • The Annual Investment Allowance will be permanently at £200,000. This is a major, permanent boost to the incentives for long-term investment by small and medium sized firms in Britain.

Today’s Budget was one which supports those who work, those who save and those who want to achieve and get on in life. It creates stability, it creates jobs, it supports responsibility, aspiration and families. It is another big step on the road to prosperity.

For more details on the various aspects of today’s budget please visit;https://www.gov.uk/government/news/summer-budget-2015-key-announcements