Mr Jayawardena has welcomed the Summer Budget, endorsing the Chancellor’s plan to finish the job on the deficit, keep moving to a higher wage, lower tax and lower welfare economy and put security first for families in North East Hampshire.
In the first Conservative budget for 18 years, the Chancellor will take action to put security first:
• The economic security of a country that lives within its means: the forecasts show Britain will be the fastest growing major advanced economy for a second year in a row, but the deficit is still too high so the Budget sets out a balanced plan to cut the deficit at the same rate as in the last Parliament to achieve a surplus.
• The financial security of lower taxes and a new National Living Wage: The new National Living Wage will mean two and a half million people get a direct pay rise. Those currently on the minimum wage will see their pay rise by over a third this Parliament, a cash increase for a full time worker of over £5,000. There’s further support for working people with an increase in the tax-free personal allowance so someone will be able to earn £11,000 before paying any income tax at all. We will also raise the 40p rate to £43,000, lifting 130,000 people out of this higher tax rate.
• Cutting tax on business to secure growth with Corporation Tax reduced to 18 per cent: we’ve already taken this rate to the lowest in the G20 and aligned it for large and small businesses, but we cannot afford to stand still so will cut it further to send out the message that Britain is open for business.
• The national security of a country that defends itself and its values: The Budget commits to meeting the NATO pledge to spend 2% of our national income on defence – not just this year, but every year of this decade. This is as well as committing £50 million to expand the number of cadet units in our state schools.
Ranil said: ‘This is a Budget that delivers security for working people in North East Hampshire and keeps Britain moving from a low wage, high tax, high welfare economy to a higher wage, lower tax and lower welfare country.
‘The new National Living Wage and tax cuts for working families will boost take-home pay for those who work hard and want to get on in life – meaning more financial security.
‘Reducing the tax burden on businesses will create jobs and give more people the security of well-paid work, and having a strong economy means we can invest in our world-class NHS and meet our defence commitments, helping families across the country feel more secure in their homes.
‘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 country that defends itself and its values. This is a Budget that puts security for families in North East Hampshire first.’