I am really pleased with this budget, which commits the government to supporting the economy, jobs and business while we recover from the pandemic.
However, importantly, it is also very clear The Chancellor must start to balance our books in the years to come.
All the major Covid support, such as furlough, the VAT reduction and the Universal Credit uplift, have been extended. This is vital to get the economy moving once restrictions end in June. It is right the Chancellor gives this support to allow as many businesses and jobs to be saved so we have a viable and vibrant economy to really get moving again. It is also right we protect the vulnerable and help those who have lost their jobs.
But I am also very pleased that companies will be given substantial incentives to invest over the next two years. Those who do so can reduce their tax bill by 130 per cent of the cost of that investment in a move that could boost investment by 10%.
This fits in with my agenda in Stourbridge of jobs and investment and it is great news.
But I think the best news is the clever ways in which the Chancellor has found sensitive but effective ways to balance our books. Only big highly profitable businesses will pay the top rate of Corporation tax at 25% from 2023. The majority of smaller businesses – the life blood of our economy here in the West Midlands - will pay less. Similarly, the freezing of tax thresholds following a final rise in April will, crucially, not affect take home pay but it will help a great deal to get the country on a firmer financial footing.
The Chancellor has also kept to a manifesto pledge not to increase the rates of income tax, National Insurance Contributions and VAT.
We have collectively gone through a great deal these last 12 months. We already have a clear road map out of lockdown. We now have a clear road map to recover the economy and protect jobs and livelihoods.
