Burnley MP Antony Higginbotham comments on Government's Autumn Statement for Growth

The measures announced include a number relating to work and employment, an issue the local MP has campaigned on before, including in a debate last week in the House of Commons.

The headline announcement related to the drop in National Insurance rates from 12% to 10% and an increase in the National Living Wage.

But economists have pointed out a so-called “stealth” tax rise still exists due to the Chancellor’s decision to leave National Insurance and income tax thresholds untouched, meaning they remain frozen until 2028.

Since 2021/22 the government has frozen the amount of money people can earn tax-free, and before higher rates come into effect, rather than raising it with inflation. That means people are paying tax on a higher share of their income in real terms.

Therefore recent pay rises for many people have dragged them into higher tax bands. Around 2.2 million more workers now pay the basic rate income tax of 20% compared with three years ago, according to official figures, while 1.6 million more people were moved to the 40% tax bracket during the same period.

During a Commons debate last week, the Tory MP Mr Higginbotham said: “The best thing we can do to help families in Burnley is to help them get into work, and that is particularly true of households that have been out of work for some time.

“I hope that in the autumn statement next week we hear more from the Chancellor on the work he has been doing with the Secretary of State for Work and Pensions on tackling long-term out-of-work households.”

Following this, the Autumn Statement for Growth will see a tax cut for people in work across Burnley in Padiham, with National Insurance Contributions reduced for 29 million people.

The Chancellor Jeremy Hunt also announced reforms to the welfare system to toughen up work requirements, ensuring those in the welfare system are incentivised to work, and making the system fair for all taxpayers.

In terms of business, the Government also announced full expensing will be made permanent. That means local business have their taxes cut every time they invest in the UK; representing an £11 billion a year tax cut for UK businesses.

Firms across Burnley will also welcome a cut to their business rates which will see retailers in the town centre, restaurants and others benefit from a 75% reduction.

There will also be support for 1.6 million low-income families with an increase to their housing benefit, while the National Living Wage has also been increased.

The Autumn Statement for Growth also backs new technologies with a £4.5 billion advanced manufacturing fund, which will include almost £1 billion for the aerospace sector – important in Burnley – backing business and supporting new jobs.

Mr Higginbotham said: “There’s no shortage of people – be it media or opposition parties – seeking to talk this country down. But this Conservative Government is making progress in tackling the immediate pressures in the economy, such as reducing the rate of inflation to help people across Burnley and Padiham with the cost of living.

“This Autumn Statement for Growth is a result of the decisions the Government have taken. At times those decisions have been tough, dealing with a global pandemic, an energy crisis and conflict on our own continent. But they have meant we are now growing faster than comparable countries, have inflation at rates lower than most, and have public debt falling.

“So now we are in a position to cut taxes, for businesses and people, as I have wanted to do since the day I got elected, and boost economic growth across Burnley and Padiham.

“And let’s be under no illusion, today’s Autumn Statement would not be possible under Labour; they will always the easy way out with a reckless, permanent increase in borrowing that would see inflation and mortgage rates spiral.”

In terms of housing benefits, more than 115,000 households are set to benefit across the wider North West region.

The Chancellor has announced the Local Housing Allowance (LHA), which calculates housing benefits, will be raised, meaning 1.6 million families, including those struggling with rent in Burnley and Padiham, will be £800 better off in 2024-25.

Exceptionally high rents, caused by global inflationary pressures, mean housing support provided to many on the lowest incomes are out of step with market rates. By raising the Local Housing Allowance rate to the thirtieth percentile of local market rents in April 2024 the Government is supporting over one million families to meet current costs.

Mr Higginbotham said: “I have said since the day I got elected that my job is to be the voice of residents in Parliament, and ensure Government is focused on us and our needs.

“And I know from talking to residents that housing costs are a struggle for many. Working with the Government we have a strong record in supporting those who need help with the cost of living – especially during the continued fight to keep inflation down and tackle higher energy bills. But we can’t rest on our laurels.

“That’s why I’ve been discussing the Local Housing Allowance with Ministers and why I’m pleased to see it increase. This decision means families who need it the most, right across our area, will receive greater support with the cost of rent – in line with increased rents across the private sector.”