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Summer Budget: Chancellor pledges ‘higher wage, lower tax’

Yesterday, the Chancellor of the Exchequer, George Osborne, delivered his first Budget since the Conservative’s majority victory in May’s General Election.

Osborne stated that the economy is “fundamentally stronger” than it was five years ago, having grown 3% since last year. The Chancellor maintained his pledge to cut the deficit by £37bn, promising to bring the UK back into the black, he said: “Many difficult but necessary decisions are required to save money and this will be done with moderation but determination.

“This is a one nation Government that does the best thing for the economy and the right thing for the country.”

Osborne also unveiled the National Living Wage, which starts at £7.20 next April and will rise to £9 an hour by 2020. The new wage will be compulsory and will replace the minimum wage, which is currently £6.50.

The Chancellor also plans to increase the inheritance tax threshold to £1m for married couples by 2017. While Corporation Tax is set to be cut to 18% by 2018.

Plans to strengthen infrastructure and transport networks across the North, known as The Northern Powerhouse, made a brief appearance in the Chancellor’s speech, sidelined in favour of cost-cutting measures.

Osborne said the government has reached agreement with the leaders of the 10 councils of Greater Manchester to devolve further powers to the city.

The Chancellor also noted that the government is “working towards deals” with the Sheffield and Liverpool City regions. He also pledged £30m funding to the newly-formed Transport for the North.

Osborne ended his speech by saying this Budget was “a plan for working people” and one that “puts security first.”

He said: “The economic security of a country that lives within its means.

“The financial security of lower taxes and a new National Living Wage

“The national security of a Britain that defends itself and its values.

“A plan for working people.”

This was posted in Bdaily's Members' News section by Ellen Forster .