Chancellor George Osborne will claim later today (March 31) that the reductions in personal and business taxes set to come into effect this week represent the biggest tax cuts in 20 years.
The cuts, which include an increase in the starting level for paying income tax and a reduction in business taxes, are part of the Government’s long-term plan to build a more resilient economy and create jobs, the Chancellor will claim.
Speaking in Essex later, Mr Osborne will say that stability is returning to the country, and with it, confidence. He will add that “Britain is starting to walk tall in the world again.”
The tax changes coming in this week include a 1 per cent cut in corporation tax to 21 per cent, a fall in National Insurance Contributions and changes to business rates, while the personal allowance will increase on Sunday to £10,000.
The Chancellor will also point out that the Government has already created more than 1.3 million jobs and that its reforms are set to lead to 3 million more in the private sector by 2018, meaning that, for the first time in 35 years, a greater proportion of people in the UK will be in work than in the US.
He will also point to the national implementation of the claimant commitment and the start of the “Help to Work” scheme, which will mean that people who have been out of work for three years or more face losing their benefits if they do not undertake work in the community.
From next Monday, anyone in this category will have to accept a community work placement, such as making meals for the elderly, visiting a jobcentre every day or taking part in further training.
Mr Osborne will say that there has not been enough pressure on people to get a job, so this week, “we will follow the new way, our way”.