Philip Dunne MP has welcomed measures to cut taxes and support the rural economy in today’s Autumn Statement from the Chancellor of the Exchequer.

Following hard work and focus to bring down inflation, the Chancellor outlined the Autumn Statement was a chance to change gear and focus on how to drive growth in the decade ahead, with the biggest package of tax cuts to be implemented at a fiscal event since the 1980s, while getting borrowing lower and inflation falling.

In his Statement, the Chancellor set out tax cuts for 27 million people from January, by reducing the main rate of National Insurance Contributions from 12% to 10%. For the average worker earning £35,000 a year, that means a £450 tax cut.

Self-employed people will benefit from abolishing Class 2 NICs entirely, and cutting the rate of the Class 4 NICs top rate from 9 per cent to 8 per cent – a with an average total saving of around £350 for someone earning £28,000 a year.

To support the lowest paid, the government will boost the National Living Wage to £11.44 an hour from April - a 9.8 per cent increase, benefiting 2.7 million workers. A full-time worker on the NLW will see their pay increase by over £1,800.

The Chancellor outlined the biggest business tax cut in modern British history by permanently enabling businesses to offset investments against their tax bills.

To support small businesses, the government will freeze the business rates multiplier for small businesses for a fourth consecutive year, saving an average shop £1,650. In addition, the Retail, Hospital and Leisure (RHL) relief is being extended, meaning a typical independent pub with a rateable value of £31,600 will get around £11,800 off their final business rates bill.

Mr Dunne said:

“Today’s Autumn Statement from the Chancellor was a real shot in the arm for the UK economy, boosting investment and growth, while easing the tax burden for families and businesses.

“The Chancellor has been able to reap the rewards of falling inflation thanks to the responsible decisions he took this year. The measures outlined today provide a much-needed boost for families and businesses in South Shropshire.

“I am particularly pleased to see the hospitality industry given more support, which is a vital employer in South Shropshire – something I raised with the Chancellor last week. The extension of business rate relief, as well as frozen alcohol duty, is very welcome news for our local pubs and restaurants.

“The triple lock has been maintained, which will see the State Pension rise by 8.5%, and the lowest paid will receive a significant boost to the National Living Wage – helping to ease pressure on household bills.”