Rachel has welcomed the Chancellor’s Budget and Spending Review

The Budget prioritises helping working families and vulnerable households in Redditch with the cost of living, including through a significant tax cut for low-income families by reducing the Universal Credit taper rate from 63% to 55%.

The National Living Wage will be increased by 6.6% to £9.50 an hour – giving a £1,000 pay rise to 2 million of the lowest paid, and pay restraints will be lifted for public sector workers.

Businesses in Redditch will also benefit from new measures, including a 50% cut in business rates next year for 90% of retail, hospitality and leisure – alongside a freeze of all rates – the creation of new business rates relief to encourage green technologies and improvements to properties.

Other measures to drive economic growth include record investment in our roads, railways and broadband; supporting innovation through a record £20 billion spending on R&D; and a huge uplift in skills training through T-levels, Institutes of Technology, and apprenticeships.

As part of the three year Spending Review delivered alongside the Budget, total government departmental spending will increase by £150 billion by 2024 – a 3.8% annual real terms increase – the largest real terms increase this century, and record levels of capital investment not seen in 50 years.

Underpinning these measures, the Budget strengthens the country’s public finances and will get debt falling again, following the £400 billion package of support put in place during the pandemic.

The new fiscal rules set out by the Chancellor will require the government to only borrow to invest and get debt falling by 2024, in line with the Government’s 2019 manifesto commitment.

Rachel said:

“Despite the unprecedented challenges caused by the pandemic, this Government is getting on with the job and delivering on the priorities of my constituents.

“I know my constituents are facing increasing pressures on their budgets right now, so I’m pleased the National Living Wage is being increased to £9.50 an hour and that the Universal Credit taper rate is being reduced by 8% which will help with the cost of living.

“Our vital public services will also receive billions of pounds more in funding. This means more money for our NHS, for our councils, for our police and all services my constituents rely on.

“I was re-elected to unlock the full potential of our town and to improve opportunity for my constituents and I’m continuing to deliver on that promise.”

Commenting, Chancellor of the Exchequer Rishi Sunak said:

“One year ago, this country was in the grip of the biggest recession in 300 years. Thanks to our Plan For Jobs, we are today recovering faster than our major competitors, more people are in work, and growth is up. But uncertainty in the global economy means that recovery is now under threat.

“That is why this Budget and Spending Review delivers a stronger economy for the British people – strengthening our public finances, helping working families meet the cost of living, supporting businesses, delivering stronger public services, and driving economic growth.

“This is a Budget which will level up every part of the United Kingdom. It is a Budget which provides the foundations for a stronger economy.”