Summer Budget cuts corporation tax and creates National Living Wage
GEORGE OSBORNE set out a “radical and bold” budget to drive economic growth, tackle low productivity and reform the welfare system.
Addressing a packed House of Commons, Mr Osborne revealed plans to cut corporation taxes to 18% by 2020 – the lowest in the G20 – while at the same time taking an axe to welfare spending to the tune of £12bn over the next three years.
The first Conservative budget for 18 years, described by the Chancellor as a “big budget with big ambitions to secure Britain’s future”, also saw the creation of a new compulsory National Living Wage, with a goal of £9 per hour by 2020.
Mr Osborne said six million people on the minimum wage would benefit from the pay rise, which will begin at £7.20 per hour from April 2016 – up 11% from the current level of £6.50.
He said: “This is the party for the working people first putting security first.” and pledged “it’s a budget for lower tax, lower welfare” country.
He added: “Britain still spends too much, borrows too much, and our weak productivity shows we don’t train enough or build enough or invest enough.”
Among many announcements the MP for Tatton revealed further devolved powers for Greater Manchester – and said progress was being made on similar devolution deals for Liverpool, Leeds and Sheffield.
Furthermore, there was £30m for Transport for the North to introduce an Oyster-card to make travel between cities and towns easier.
The system of Vehicle Excise Duty will be radically overhauled too with a standard rate of £140 covering 95% of cars on the road. Revenue will be used for a new Roads Fund , to pay for investment in the strategic road network.
