Earlier this week the
Chancellor made the decision to scrap the abolition of the 45p tax rate. From
the moment it was announced I have made my views against this plan very clear
and have always maintained that I believed it was a mistake.
I have been in constant
contact with Ministers raising my concerns, and those of my constituents, about
the cutting of the 45% tax band for
those earning over £150,000.
I made no secret of the fact that I was concerned about the scrapping of
the 45p tax rate and the impact this measure may have on inflation and interest
rates in the coming months. My thoughts were shared by a number of constituents.
I, and many other MPs across the country, have made representations to
the Government and are pleased the Chancellor has listened to those concerns
and decided against pushing ahead with this. This shows the Government is
willing to admit when they have got it wrong and are prepared to listen and
change, and that is something I welcome.
I know that the scrapping of the 45p tax rate has overshadowed some of
the very positive announcements in the budget, especially the support for both
households and businesses with energy costs.
The Energy Price Guarantee will
provide further support for households by limiting the amount the billpayer can
be charged per unit of gas or electricity, so the exact bill amount will
continue to be influenced by how much energy is used.
The scheme will also ensure a
typical household pays an average £2,500 a year for their energy, and save a
household £1,400 a year on average usage.
While the Energy Bill Relief Scheme
will discount wholesale gas and electricity prices for all businesses,
charities, schools and hospitals, which face excessively high energy bills over
the winter period.
I also welcome the reversal of the
National Insurance health and care levy and cut in the basic rate of income tax
which will put more money into the pockets of everyone in work.
I do believe that simplifying our tax system and removing the higher
rate tax band is the right thing to do, however I want to make clear that it
has got to be at the right time when our economy is growing, and public
finances are in a better position.
I do believe that now is the completely wrong time when so many
households are going to be facing huge financial pressures in the coming months
to pay their bills. As households up and down the country face increasing
bills, this is the wrong time to be cutting taxes for the wealthiest.
The fact the Government
has decided to scrap this plan shows that MPs have represented their
constituents and because of this the Government has changed tact. I have done my job as MP, representing
constituents’ concerns, and am pleased to have been able to persuade the
Government to change their policy.
I understand that some people will be frustrated by the recent events
and now look forward to working with my colleagues in Westminster to gain back
the public’s trust and show that we remain the best people to be able to run
this country, especially in the coming months ahead.
As always, my office is
available for any constituents needing help, advice or guidance. Please do get
in touch if I can help – tel. 01726 829379, email – office@stevedouble.org.uk
ENDS
