There was a lot of positive news to unpack from Jeremy Hunt's statement in the Commons yesterday. He announced a package of measures aimed at achieving long-term, sustainable economic growth for everyone throughout the UK by breaking down the barriers to work, boosting business investment and tackling labour shortages. A further £180 million has been provided to the Welsh Government in order to promote growth and funding for Wales continues to be at record levels.
Last November the Chancellor was focused on providing economic stability in his statement. This Spring Budget he shifted the focus onto growth. As a result, and according to the independent Office for Budget Responsibility (OBR), the Government will meet its targets of halving inflation, growing the economy and getting debt falling.
To help families in Aberconwy and throughout the United Kingdom into work, the Chancellor announced that the Government will pay the childcare costs of parents on Universal Credit moving into work. The abolition of the Lifetime Allowance, as well as a 50 per cent increase in the Annual Allowance for pension contributions, will increase the incentive for older workers to stay in the workforce for longer. According to the OBR, these measures contribute to the largest upward revision in potential economic growth in any of their forecasts since 2010.
In a boost to business investment here in Aberconwy and across the UK, the Government has announced a new policy of ‘full expensing’ for businesses' capital spending, for the next three years. This means businesses can write off the full cost of qualifying plant and machinery against their tax bill and is equivalent to a £9 billion annual corporation tax cut.
I know how concerned so many of you throughout Aberconwy have been about the rising cost of living and, in particular, about surging energy bills. I have taken the concerns of residents and businesses directly to the Government and I especially welcome the Chancellor’s decision to maintain the Energy Price Guarantee (EPG) at £2,500 for a further three months, saving a typical household an extra £160. Additionally, the Chancellor has cancelled the scheduled 11p rise in fuel duty and retained last year’s 5p cut for which I campaigned to current rates, a tax cut worth £100 this year for a typical driver. These measures are having a real effect on the cost of living: the EPG and other cost of living measures helped reduce peak inflation and will see inflation fall to 2.9% by the end of this year. These measures bring total Government cost of living support to £94 billion.
The Budget sets out a comprehensive plan to remove barriers to work, boost business investment and support economic growth. The Government's efforts to help households with higher costs bring total support to an average of £3,300 per UK household over 2022-23 and 2023-24. The budget reinforces the Government's vision for the UK to be the best place in Europe for companies to locate, invest and grow.
Aberconwy is home to a seemingly countless number of amazing pubs. They help to make this such a special place to live and a popular destination to visit. I’m pleased that our pubs will be able to benefit from the Chancellor’s announcement of a “Brexit Pubs Guarantee”. This means the duty on draught products will be 11p lower than duty in supermarkets. This change in duty is only possible now the UK has left the EU. It is a real signal of the changes that will come by lifting EU regulations in other areas to attract business and investment - such as the life sciences and medicine sectors, which were identified in the budget.
The Hendy UK Connectivity Review highlighted the strategic importance of the North Wales corridor to the United Kingdom. I have been campaigning for the electrification of the North Wales Main Line and for the name of the franchise to be changed to the North Wales and West Coast Main Line to better reflect its strategic importance. I welcome the announcement that £20 million will be provided for the restoration and reinforcement of Holyhead Breakwater – a reflection of the Government’s commitment to North Wales’ transport connectivity.
Despite the predictions of the IMF, and from those for whom talking down our country is in vogue, the United Kingdom is going to avoid a recession and growth is going to be at respectable levels for at least the short term. Considering the cost HM Treasury has had to bear, first from the pandemic and now the war in Ukraine, this is a considerable achievement in which we should all be proud.