Last week, Chancellor of the Exchequer, Jeremy Hunt MP presented his Budget, with a focus on allowing people to keep more of their earnings.
Benefitting 27 million workers across the UK, the main rate of employee National Insurance Contributions (NICs) will be cut from 10% to 8% which, further to the cut from 12% in January, will mean a tax cut of over £900 for a worker on average earnings.
Two million self-employed workers will benefit from a cut in Class 4 NICs from 9% to 6% which, when combined with other tax cuts from the Autumn Statement, means around £650 for a self-employed person earning an average £28,000.
The decision to freeze fuel duty for another year, and extend the 5% cut, is particularly welcome here in rural Banff and Buchan
The freeze on alcohol duty, including whisky, is a measure that supports not only the producers and jobs but also the consumers, maintaining the affordability of these world-class products.
A rise in the earnings threshold for Child Benefit and halving the rate at which it is withdrawn, will benefit half a million working parents by an average of £1,260 and, by April 2026 the unfairness for single earner families will also end.
The Budget also earmarked significant investment for the northeast, with Peterhead receiving £20 million over ten years as part of the UK Government’s Long-Term Plan for Towns.
This funding comes to Banff and Buchan in addition to the £20 million levelling up funding announced for Peterhead and Macduff, and almost £10 million for the seafood industry in Peterhead and Fraserburgh received from the UK Government last year.
While the extension of the Energy Profits Levy (EPL) end date from 2028 to 2029 was disappointing, I was glad to hear The Chancellor acknowledge my representations on the matter.
He agreed to a significant condition I've long advocated for: legislation ensuring that the EPL will be removed when the prices for oil and gas stabilize at a normal prices over a consistent period.
It’s also important to point out the EPL's generous investment allowances which will be maintained.
Labour’s approach by contrast would see an increase in the EPL from 75% to 78%, no investment allowances, no set end date, no legislation to remove the EPL early when prices return to normal and they are committed to banning new oil and gas exploration!
But at least Labour’s sector-destroying position is consistent!
SNP will say one thing to the industry and northeast voters one day, only to about face and say the complete opposite the next to their Scottish Green Party coalition partners.
Finally, I was thrilled to be able to attend the Taste of Buchan event put on by the Higher Travel and Tourism class from Peterhead Academy on 29 February.
Everyone involved deserves to feel really proud of theplanning, preparing and delivering a
fantastic showcase of local food and drink and a great opportunity for local businesses to come together and work in partnership with the school.
Well done all.