Philip Dunne MP has welcomed a tax cut for thousands of people across South Shropshire, saving workers an average of £450 a year.

Having met the target to halve inflation, the Government is now able to cut taxes.

From Saturday 6th January 2024, employee National Insurance contributions have been cut from twelve per cent to ten per cent, delivering a tax cut of £450 for people in work earning the average UK income of £35,000.

The Government will also cut National Insurance for the Self Employed, delivering a total average saving of £340 a year, which will come into force later this year.

This New Year tax cut means a senior nurse with five years of experience will receive higher take home pay of £600 a year; a typical police officer will receive more than an extra £630; a typical junior doctor will receive an over £750 a year in after tax salary and a hard-working family with two earners on average national incomes will be £900 better off a year.

This tax cut is only possible because of the long-term, difficult decisions the Government took to get inflation falling and strengthen the economy.

Mr Dunne said:

“With inflation falling, thousands of working people across South Shropshire have now had their taxes cut, thanks to the Government’s long-term decisions for a stronger economy.

“This is a tax cut worth hundreds of pounds a year to a worker on an average salary, helping ease the cost of living burden and allowing people to keep more of their own money.

“It was also encouraging to see over New Year that some of the leading mortgage providers were cutting renewal rates for those whose fixed rate deals are coming to an end in coming weeks.”