Ensuring Britain's economic stability

It was necessary for the government to act this week to reassure the markets of Britain's fiscal discipline and ensure our country’s economic stability. That is why the government has now decided to keep the increase in corporation tax that was planned by the previous government. 

  • This will act as a down-payment on our full Medium Term Fiscal Plan which will be accompanied by a forecast from the independent OBR. The government will control the size of the state to ensure taxpayer's money is always well spent.
  • We all want to live in a country where people can get good jobs, new businesses can set up and families can afford a better life. We will get through this storm and deliver the strong and sustained growth that can transform the prosperity of our country for generations to come.

The government will do this by:

Delivering Growth and Stability

  • Growing the economy: this remains the key challenge to help protect living standards for everyone, especially the less fortunate, and to protect and improve public services. Since the 2008 financial crisis this country has been held back by consistently weak growth, which has made us all poorer. Restoring a low tax, high wage, and high growth economy is the Conservative government's priority, and will make the country richer and better off.
  • For growth, businesses and households need stability. Conservatives understand that – it is why we acted rapidly to help businesses and households with their energy costs this winter. But it is also true that Britain is not alone – global economic conditions are worsening due to the continuation of Putin’s illegal war in Ukraine and the aftershocks of the pandemic.
  • The government recognise this and will act to reassure markets of  its commitment to financial stability. It is clear that parts of the mini-budget went further and faster than markets were expecting. The PM has recognised the need to act to rectify that and has therefore decided that the way that we deliver our mission needs to change.
Maintaining fiscal discipline

  • The government will restore fiscal discipline now. Given the exceptional circumstances we are committing to keep the increase in corporation tax that was planned by the previous government. This will raise £18 billion per year, and act to restore the public finances and market confidence in the UK’s fiscal discipline.
  • We must and will put our finances on a firm footing in the longer-term. This change will act as a down-payment on our Medium Term Fiscal Plan which will be accompanied by a forecast from the independent OBR. We will do whatever is necessary to ensure that debt is falling as a share of the economy in the medium term. 
We owe it to the next generation to improve our economic performance. That is how we will deliver higher wages, new jobs, better public services, and how we will ease the burden of debt. The new Chancellor, Jeremy Hunt, one of the most experienced and widely respected government ministers, shares that conviction and will help us deliver this mission in the national interest. 


Protecting small businesses

  • SMEs will be protected from the rise in tax. The government will retain the small profits rate introduced in the 2021 Finance Bill, so that businesses with profits under £50,000 continue to pay 19 per cent and businesses with profits under £250,000 pay a reduced rate. Around 70 per cent of actively trading companies will be protected from a rate increase.

Comments

Post a Comment

Popular posts from this blog

Nick Herbert on his visit to flood hit areas of Cumbria

Please note that the post below was published more than ten year ago on 21st November 2009 Nick Herbert MP, shadow cabinet member for the Environment, Food, and Rural Affairs, was in Cumbria this morning to see the areas affected by the flooding. He writes on Conservative Home about his visit. Here is an extract. I’ve been in Cumbria today to see the areas affected by the floods. I arrived early in Keswick where I met officials from the Environment Agency. Although the river levels had fallen considerably and homes were no longer flooded, the damage to homes had been done. And the water which had got into houses wasn’t just from the river – it was foul water which had risen from the drains. I talked to fire crews who were pumping flood water back into the river, and discovered that they were from Tyne & Wear and Lancashire. They had been called in at an hours’ notice and had been working on the scene ever since, staying at a local hotel. You cannot fail to be impressed by the
Read more

Quotes of the day 19th August 2020

Image
"Wise men profit more from fools than fools from wise men; for the wise men shun the mistakes of fools, but fools do not imitate the successes of the wise."  ( Cato the Elder , who lived 234 BC - 149 BC, quoted in "Lives" by Plutarch.) There is a similar saying by Germany's Iron Chancellor, Otto von Bismarck: Benjamin Franklin is supposed to have put the same saying in a more humorous form: "Wise men profit by the mistakes of others, while fools will not learn even from their own blunders." See also this thread on the "Quote Investigator" website . Let us all be wise and learn from the events of the last few days.
Read more

Quote of the day 24th July 2020

I was moved to put the passage below forward as a quote today when I saw a horrible post on twitter from someone writing that it was "excellent" that someone who took a different view from her about Brexit had died. I won't write which way round it was so that all the Remain supporters can assume the post was from a Brexit fanatic welcoming the death of a remainer and all the Leavers can assume it was a Remainiac welcoming one less Brexiteer. There's been plenty of nasty stuff on both sides but if you catch anyone of your own viewpoint  posting something like that who might listen to you, please do call them out on it - and point out that they're giving everyone on your side of the argument a bad name. Anyway, here's the quote from John Donne.
Read more