Update: How the Growth Plan will support Norwich North

I wanted to update all constituents following the Government’s announcement of the Growth Plan last week. I understand that this is a very difficult time for many families and businesses in Norwich, and so I want to explain how the Chancellor’s plans will help.

 

The Growth Plan is ultimately all about delivering the economic growth the UK needs. It makes growth the government’s central economic mission, setting a target of reaching a 2.5 per cent trend rate. Sustainable economic growth matters, because it will help everyone here in Norwich by leading to higher wages and greater opportunities. It will also provide sustainable funding for public services.

 

The Growth Plan makes good the government’s commitment to cut taxes for people and businesses. The government will cut National Insurance contributions from November and cancel the Health and Social Care Levy and next year’s planned rise in Corporation Tax, keeping it at a competitive rate of 19%.

 

Over 30 million people will see tax cuts as a result of the changes to income tax and National Insurance. For example, someone earning £30,000 will pay £400 less tax next year. This is on top of cuts to Stamp Duty for those looking to buy a house or get on the property ladder.

 

The Growth Plan also brings forward the planned cut to the basic rate of income tax and abolishes the additional rate of income tax completely, simplifying the tax system and making the UK more competitive. These tax cuts will ensure individuals keep more of what they earn, and make the whole of the UK a more attractive place to live and work.

 

I also know that many families are concerned about their energy bills this winter. These tax cuts are in addition to the Government’s Energy Price Guarantee. The Guarantee will ensure that a typical household in Great Britain pays, on average, around £2,500 a year on their energy bill, for the next 2 years, from 1 October 2022.

 

With the Energy Price Guarantee a typical household will save around £1,000 and a business will pay less than half the wholesale prices anticipated this winter. I know that is a big boost for many valued local businesses who have contacted me about their concerns.

 

A typical person living in a flat will also save £800 on the household's energy bills – and if they are working full time on National Living Wage, over an additional £100 on tax. This is around £900 in total. 

 

More widely, the Growth Plan also includes other things that would help Norwich too, such as:

 

• • Creating new Investment Zones, possibly in Norfolk, to drive growth and unlock housing. This would help create even more good jobs locally by easing regulation.

 

Taken together, reforming the economy, cutting and simplifying tax, and maintaining fiscal discipline will drive efficiency, enhance UK competitiveness, and help to boost growth sustainably in the long term. And, crucially, that is what funds the public services we all need too.

 

I support growth, as it will help local people and businesses here in Norwich North with higher wages, greater opportunity and the right public services, and so I will be working in Parliament to deliver it.

  

 

You can read more about the Growth Plan here: The Growth Plan 2022 (HTML) - GOV.UK (www.gov.uk)

 

You can check what cost of living support you could be eligible for, and read more about how the Government is helping everyone over the upcoming winter, here: Help for Households - Get government cost of living support.