Tax – The government is putting £450 back into the pocket of the average worker earning £35,400 a year through a National Insurance (NI) tax cut from 12 per cent to 10 per cent.
A total of 27 million working people will benefit.
We are also be cutting and simplifying tax for two million self-employed workers by abolishing Class 2 National Insurance contributions and cutting the NI top rate from nine per cent to eight per cent. This will deliver an average saving of £350 for someone earning £28,000 a year.
This means businesses can reduce their tax bill by 25p for every £1 they invest in new technology, equipment and machinery.
It is the biggest tax cut for businesses in modern British history and is predicted to boost investment by £20 billion per year over the next decade.
Business leaders called for this move, arguing it would be the single most effective policy the government could introduce to support businesses. The government has listened.
Small businesses are being supported too. The NI cuts for the self-employed could be worth £500 to small traders, and small businesses in the hospitality sector with a rateable value of less than £110,000 will have their rates reduced by 75 per cent for another year.
To support local pubs, breweries and distillers, the Chancellor is freezing alcohol duty until August.
Pensions – The government has kept its promise to keep the triple lock, which guarantees that the state pension rises by inflation, earnings or 2.5 per cent - whichever is highest.
In April this year the state pension was boosted by inflation (10.1 per cent).
Next April it will be increased by earnings (8.5 per cent). These are the two largest increases in the state pension in UK history.
As Secretary of State for Work and Pensions I took this decision in conjunction with the Chancellor to ensure that people who have worked and contributed to our economy are supported in their retirement.
Low Pay – The Chancellor announced an increase in the National Living Wage from £10.50 an hour to £11.42.
This is the largest cash increase in the history of the NLW and will boost the salary of a full-time worker by £1,800 from next April. Benefits will also increase in line with inflation (6.7 per cent).
Now that inflation has halved, and is forecast to fall further, the time is right to focus on boosting productivity, rewarding hard work and growing our economy.