Rishi Sunak spent money today on helping the least-well-off, as he lined up Treasury behind Boris Johnson’s levelling up agenda in a cash-splurging Budget.
The Chancellor made a risky move to put Tory backbench tension at bay by making a series of announcements to help some of Britain’s poorest workers and regions.
He confirmed that the minimum wage would be hiked to £9.50 next year, and the public sector pay freeze is being axed.
And in one of the most eye-catching moves, Mr Sunak said universal credit is being made far more generous to give families another £2billion.
The taper rate, which is how much claimants are losing for every hour worked over the allowance, has been slashed by 8 percent from 63p to 55p in the pound.
The Treasury said the new level was “totemic” because it was the first recommendation by Iain Duncan Smith.
The Chancellor made a risky move to put Tory backbench tension at bay by making a series of announcements to help some of Britain’s poorest workers and regions.
In one of the most eye-catching moves, Mr Sunak said universal credit is being made far more generous to give families another £2billion.
Sunak outlined his plans today and stated that ‘we will always give people support and the tools to create a better future for themselves. And levelling up.
“Because for far too long and far too long the location of where you were born has determined too much about your future.
“Because opportunity should not be limited to the wealthy few, but be available to all children in an independent and prosperous United Kingdom.”
Rishi Sunak said he was allocating the first round of bids from the ‘Levelling Up Fund’, noting it would be £1.7 billion to ‘invest in the infrastructure of everyday life in over 100 local areas’.
He added: ‘With £170 million in Scotland, £120 million in Wales, and £50 million in Northern Ireland – more than their Barnett shares. This will be a benefit to the entire United Kingdom.
Mr Sunak stated that the Government supports projects in Aberdeen, Bury and Burnley, Lewes and Clwyd South, Stoke-on-Trent, and Labour areas of Ashton under Lyne and Doncaster, South Leicester and Sunderland.
When discussing the 8 per cent reduction in the Universal Credit taper rate, he said: “Let us not be in doubt: this tax on work – at a high rate of tax at the that.”
“To ensure work pays and to help some of our lowest-income families keep more of their hard-earned income, I have decided that the rate will be cut by not 1 per cent but by 2 per cent. It will actually be cut by 8 percent.
Mr Sunak said the tax cut would be worth more than £2 billion and would be introduced by no later than December 1.
To reduce the pressure on drivers due to high fuel prices, fuel duty will be frozen. In addition, alcohol taxes will be drastically simplified. Draught drinks will be subject to a special lower duty rate.