Chloe Smith
MP for Norwich North
Apr
10

New Tax Changes

Author: Chloe Smith, Updated: 10 April 2019 11:31

Over the weekend, you may have seen the Chancellor’s tax cuts announced in the Budget have come into effect.  These will support families in Norwich North and across the country as a whole.  As part of MyPlan for Norwich North, I will always support measures that back jobs and allow my hardworking constituents to keep more of their hard-earned money.

The broad changes announced which I supported include:

•Giving 32 million people an income tax cut - including 41,675 people in Norwich North - meaning people keep more of what they earn - on average £1,205 per year.

•Freezing fuel duty for the ninth successive year saving the average car driver £1,000 by 2020 compared to Labour’s plans. 

•Giving a £690 annual pay increase to over 2.4 million workers by increasing the National Living Wage – benefiting around 151,000 people in the East of England.

•Giving people more dignity and security in their retirement in Norwich North by increasing the full State Pension by 2.6 per cent this year, meaning people will get nearly £170 more a year.

You can see the document outlining these changes for yourself here.

 

Since the start of the new tax year on 6 April, a new rate of the personal allowance and higher rate of income tax have come into effect. An individual’s personal allowance is the amount of income they can earn before they start paying tax. The personal tax allowance has increased from £11,850 last year to £12,500, an increase of £650 – almost double what it was under Labour. This means a basic rate taxpayer in Norwich will pay over £1,200 less income tax than they did in 2010, letting hardworking people across Norwich North keep more of their hard-earned money.

Income tax cuts which I supported will take 1.74 million of the lowest paid out of tax altogether and will have taken 230,000 people out of the higher rate tax bracket since 2015.

As well as cutting taxes for millions of people a year earlier than planned, fuel duty has been frozen for a ninth year in a row maintaining my commitment to help drivers, saving thousands of pounds.

Over 2 million workers will receive a pay rise as the Government measures boost the National Living Wage. From 1 April new rates of the National Living Wage have risen again, from £7.83 to £8.21, a 4.9 per cent increase – handing a full-time worker a further £690 annual pay increase and taking his or her total pay-rise, since the introduction of the National Living Wage, to over £2,750 a year.

I have again supported increasing the full State Pension, with it increasing by £3.26 a week, giving pensioners in Norwich an extra £169 a year. This is also in line with the consistent approach the Government has taken towards the State Pension which has been raised by £1640 since 2010, giving people the dignity and security, they deserve in their retirement.

As your constituency MP, I recognise the importance of these changes for us here in Norwich. They positively demonstrate the difficult decisions which have been taken to ensure we have a strong and balanced economy. I will continue to support the Government in Parliament in delivering lower taxes and supporting those who earn the least here in Norwich.

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