HM Treasury spokesperson: “A strong economy
and sustainable public finances are vital to achieve rising
living standards.
The Spring Budget set out plans to build a stronger, fairer
economy by investing in skills, schools, social care and
cutting-edge technology, while continuing to bring down the
deficit and live within our means. The government appreciates
that families are concerned about the cost of living, and that is
why we are cutting tax for millions of working people, increasing
the National Living Wage to £7.50 per hour from next month, and
freezing fuel duty for the seventh year in a row.” ENDS
Background:
- More people are in work than ever before and real wages are
forecast to rise in each of the next five years. This government
is taking action to further raise income, help people progress in
work and keep more of what they earn, and reduce the essential
costs of living by:
- Taking
more people out of tax – from April 2017, 1.3 million people
will have been taken out of income tax altogether, compared to
the beginning of this Parliament. A typical basic rate
taxpayer now pays £1,000 less income tax than in 2010.
- Raising
the National Living Wage – helping to deliver the fastest pay
rise for the lowest earners in 20 years. This is an increase in
earnings of £1,400 a year for a worker since its introduction in
2016. We will also spend an extra £4.3 million each year
strengthening minimum wage enforcement so people are paid what
they are due.
- Freezing
fuel duty for 7 years in a row - saving the average driver £130 a
year compared to pre-2010 escalator plans.
- Doubling
free childcare for nearly 400,000 working parents.
- This is
the first month that the ONS bulletin presents CPIH as its
headline measure of inflation.
- CPIH is
not yet designated as a National Statistic.
- The
Government would need to see CPIH establish a reliable track
record as a National Statistic before we could consider any
policy changes.
-
Public Sector Net Borrowing (PSNB) in February was
£1.8 billion, £2.8 billion below the previous February’s
outturn. The deficit is down by almost two-thirds, and the OBR
forecasts that the government is on track to meet its fiscal
targets.
