The Government’s Growth Plan will take action on five key points which will benefit people in Crawley in the short- and long-term: energy, growth, public finances, supply side reform, and personal taxation.
To address the issues which are causing financial hardship for so many, namely the consequences of Covid-19 and Russia’s invasion of Ukraine, this Government is taking action by cutting people’s energy bills by £1,400 this year.
Energy bills are no longer due to rise by £6,500, as a result of the Government’s Energy Price Guarantee. This will limit the unit price that consumers pay for electricity and gas, consequently for the next two years the typical annual household bill will be £2,500.
The Energy Bill Support Scheme, which gives households £400 off their bills this winter, will be kept.
Non-domestic energy users will receive support through the Energy Bill Relief Scheme. This initiative will discount wholesale gas and electricity prices for all businesses, charities, schools and hospitals, providing a price guarantee equivalent to what has been offered to households.
The Growth Plan will ensure that every Government department is an economic growth department, with each policy initiative being measured against a defining test of whether it helps or hinders growth, to support our country to achieve a sustainable trend growth rate of 2.5 per cent.
As the Chancellor said in the House of Commons, fiscal responsibility remains essential for economic confidence. To this end, the costings of the measures in the Government’s Growth Plan will be included in the next Office for Budget Responsibility forecast.
Wider reforms to support our economy are also needed. It is wrong for trade union bosses to hold our country to ransom, Minimum Service Levels for transport services will be introduced, ensuring militant strike action cannot derail economic growth.
Government is also bringing forward legislation to implement new obligations on energy suppliers to help hundreds of thousands of people take action to reduce energy bills. This work will deliver an average saving of around £200 per year.
The basic rate of Income Tax will be cut, to 19 pence, for 31 million people. This tax cut is being brought forward by one year to April 2023.
Corporation Tax will also be kept at 19 per cent, with the planned increase being scrapped, meaning the UK can maintain a competitive business tax regime; delivering an effective tax cut that puts almost £70 billion into the economy, giving businesses the freedom to reinvest, boost wages and create jobs.
Through securing economic growth we ensure we have the resources to fund our important public services.
Henry Smith MP