Cutting taxes will release growth right across Britain
As we gathered in Birmingham this week, what we heard from the Prime Minister and Chancellor was their commitment to economic growth. And I fully support them in that.
Higher growth means more jobs, higher pay and more money to fund public services, like schools and the NHS.
And growth that is built on small businesses, like the brewery I am visiting today in Wandsworth. Sambrook’s Brewery will benefit from reforms to alcohol duty, including a new lower duty rate for their draught products. This reduces their tax burden, freeing up vital revenue for reinvestment and growth. That is what is at the core of our Growth Plan. Turbo charging businesses with a simpler, lower tax economy and ambitious economic reforms.
By saving businesses thousands of pounds on their energy costs, we are setting the foundations of our future prosperity
It includes the biggest tax cut in generations so businesses can invest more and create more high-quality jobs. But we are also shielding businesses from catastrophic energy price hikes triggered by Putin’s brutal invasion of Ukraine.
Just over a month ago small business owners up and down the country had understandable concern in the face of a once in a lifetime energy price shock. Entire livelihoods were on the line. Businesses, charities and public sector organisations were facing huge pressures with their energy bills, with some increasing by more than 500 per cent.
We were never going to let that happen. We acted within days of the new leadership taking office, confirming that this winter, businesses – the engine of this country’s growth – will be protected.
Our support will keep energy bills down for businesses like Sambrook’s, providing certainty and peace of mind. By saving businesses thousands of pounds on their energy costs, ensuring they can survive this winter, we are setting the foundations of our future prosperity.
We are also helping breweries and pubs by freezing the duty rates for beer, cider, wine and spirits from February next year. This gives them more money to invest, support business and help consumers with the cost of living.
By lifting the tax burden on business and protecting them from the storm created by higher energy costs this winter we will release growth right across the country, driving our economy forward and creating opportunity for everyone. And as the Chancellor set out, growth and sustainable finances go hand in hand.
Maintaining fiscal discipline will provide the confidence and stability to underpin long-run growth and get our economy moving. That’s why our upcoming medium-term Fiscal Plan will set out how we’ll drive down borrowing, while maintaining the focus on growth that will improve living standards for all.
Felicity Buchan, Conservative MP for Kensington and exchequer secretary to the Treasury.
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