Boris Johnson Announces ‘Biggest Tax Cut In A Decade’ Worth £6 Billion
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In an op-ed for The Sun with Chancellor of the Exchequer Rishi Sunak, Johnson explained how prices are being 'pushed up' around the world, citing extra demand caused by global industry 'roaring back into life' post-Covid and Vladimir Putin’s 'abhorrent invasion of Ukraine'.
The pair recognised that things are 'tough', but promised: "We will get through this.
“That’s why we are helping households across the country with £37 billion of financial support.
“It includes a council tax rebate, a cut in fuel duty, at least £400 for every household to help with energy bills and at least £1,200 for the eight million most vulnerable households.
“We’re delivering the biggest ever increase in the National Living Wage, worth an extra £1,000 a year for those working full-time.
“And we’re helping another million families keep around £1,000 extra a year by cutting the Universal Credit taper rate.”
Johnson and Sunak said the government has increased the personal allowance people have before they have to pay any income tax from £6,475 in 2010 to £12,570 today, which means millions will be ‘lifted’ out of paying any income tax at all and works out as a ‘real terms tax cut of £750 for 27 million people’.
As of Wednesday 6 June, the National Insurance threshold will also rise from £9,880 to £12,570, in turn ‘saving 30 million British workers up to £330 a year’ and lifting 2.2 million people out of paying any National Insurance or income tax on their earnings whatsoever.
Johnson and Sunak added: “It’s the single biggest tax cut in a decade, worth £6 billion.
“It means around 70 per cent of British workers will pay less National Insurance.
“And that’s even after accounting for the Health and Social Care Levy that is funding the biggest catch-up programme in NHS history — and putting an end to spiralling social care costs.
“So, whether you work in a factory, or are a care worker, a hairdresser or a graphic designer, this week’s tax cut is likely to make you and your family better off.”
The duo encouraged people to find out exactly what the tax cut means for them by visiting the Government’s Cost of Living page on gov.uk and using the online calculator tool.