Economy is back in health...don’t let Labour ruin it
THIS WILL be the year Britain’s economy bounces back. Last week inflation fell to 3.4 per cent, from highs of over 11 per cent in 2022 – the fastest fall since the 1980s. According to the Office For Budget Responsibility we are forecast to hit the Bank of England’s two per cent target a year ahead of expectations.
Food inflation has fallen even more dramatically, down to five per cent from nearly 20 per cent a year ago. This will make a real difference to Sunday Express readers lives. Wages are increasing faster than prices for the eighth month in a row and growth is returning to the economy.
There is more to do. But with investment flowing in, the signs are clear that the Conservative Government’s plan is working.
Because of the difficult decisions we have taken, we can now responsibly cut taxes on working people – to ensure we incentivise work and boost growth.
Currently, if you work you pay two types of tax – National Insurance Contributions (NIC) and Income Tax. However, if you get your earnings from other sources you only pay income tax. That is not morally or economically right.
That’s why the Conservatives (despite opposition from Labour) are cutting NIC further, and have ambitions to put a stop to it once and for all when it is fiscally responsible to do so. By cutting the main rate of employee NIC from 12 to eight per cent, we have delivered a tax cut worth over £900 a year for the average worker.
The average earner in the UK now has the lowest effective personal tax rate since 1975 – lower than in America, France, Germany or any G7 country. But it’s not just workers we’re supporting.
From next month, we’re delivering a £900 boost to the State Pension, on top of last year’s sizeable increase through the triple lock. This in stark contrast to the Labour Party which in government saw the increase in basic state pension of 75p a week in one year.
Car drivers will save £50 on average this year thanks to the Chancellor extending the temporary 5p cut on fuel duty, and we’re
holding the price of a pint by extending the alcohol duty freeze until February 2025.
That’s more money in people’s pockets, which is the best way to boost the fortunes of high streets after the hard times brought about by the pandemic and Putin’s energy shock.
We also need to deliver more productive public services that work better and ensure taxpayers’ money is being spent wisely.
I am proud to have delivered a landmark Public Sector Productivity Plan alongside the Chancellor. Backed by over £4billion investment we can unlock huge savings by the end of the decade, meaning nurses can spend more time with patients, teachers can spend more time with pupils, and our police officers can return to the streets rather than filling out forms in an office.
Labour will put this progress under threat. Another week has now passed without Keir Starmer or Rachel Reeves setting out what their plan for the economy is.
Labour has attempted to ditch the £28billion price tag of its 2030 energy promise, while promising to still deliver it – these unfunded spending commitments mean Labour threatens our progress to halve inflation and will increase the tax burden on families and businesses. Following the Budget, Labour is also facing a £2.7billion blackhole in its spending plans. It’s
the same old Labour Party. No plan. Just more borrowing and higher taxes.
However, this Prime Minister and the Conservative Government are working tirelessly to do the right thing. The right thing for the country, for families, for workers, for pensioners and for Sunday Express readers.
Let us never forget in 2010 Labour left office with fewer people in work and more d ebt to pay off
LET US never forget that in 2010 Labour left office with fewer people in work, more debt to pay off and a deficit ballooning out of control.
This is in contrast to the UK today. Despite having to deal with the worst pandemic in 100 years, war in mainland Europe and the highest energy spike since the 1970s, this year we will have: inflation back to target; unemployment at near record lows; wages rising; taxes on work falling; four million more people in work since 2010; the fastest decarbonisation in the G7; and the highest state pension we have ever seen.
The last thing this country needs now is five years of the Labour Party. The progress we have made is too important to let this happen.
Thanks to our plan to build a better future, under the Conservatives and Prime Minister Rishi Sunak, Britain’s best days are still to come.