News story

A Budget that delivers on our plan for working people in the East of England

At Summer Budget the Chancellor of the Exchequer, George Osborne, set out the next stage of the government’s plan for the East of England.

Chancellor of the Exchequer, George Osborne, today used his Summer Budget to set out the next stage in delivering the government’s plan for working people in the East of England.

This Budget has delivered a tax cut for 2.8 million people in the East of England, taken an additional 58,000 out of income tax all together, announced new opportunities for up to 270,000 apprentices and offers more childcare to working parents. Since 2010, there are 230,000 more people in work in the East of England and 80,000 more businesses.

But there is more to do. That’s why the Budget announces new investments in infrastructure, enterprise, skills and education alongside wide-ranging reforms to help working people at every stage of their lives to help deliver more jobs and investment in the East of England.

Chancellor of the Exchequer George Osborne said:

My budget today puts security first. It delivers economic security so Britain lives within its means, financial security for families, and national security for all.

A new National Living Wage for 160,000 people, and an income tax cut for millions more provides new support for people right across the East of England.

At the heart of our plans are commitments to improve transport, infrastructure, education and skills.

Measures announced in the Budget deliver on the Government’s promise to support working people in the East of England with:

  • A tax cut for 2.8 million people in the East of England with a rise in the Personal Allowance and an increase in the higher rate threshold. 58,000 more people will also be taken out of income tax altogether.
  • A significant pay rise for 160,000 working people across the East of England with the introduction of the National Living Wage.
  • A doubling of the amount of free childcare for working parents of three and four year olds – meaning thousands of families in the East of England will now receive 30 hours of free childcare a week.
  • Thousands of family homes in the East of England taken out of Inheritance Tax altogether as a result of the increase in the Inheritance Tax allowance.
  • New opportunities for up to 270,000 apprentices as part of ambitious plans to grow the number of apprentices across the country.

The Budget also backs businesses in the region with:

  • A tax cut for businesses across the East of England with a cut in the main rate of corporation tax to 19 per cent in 2017 and 18 per cent in 2018.
  • An extra £1,000 for every business thanks to an increase in the Employment Allowance to £3,000.
  • Further support for 10,000 businesses in the East of England from a significant increase in the Annual Investment Allowance to £200,000.

The Summer Budget also includes investment directly to support the East of England:

  • New Regius Professorships like that established in the University of Essex will be set up in order to recognise excellence in universities across the UK. The competition will be launched later this year, with a view to making awards to celebrate the Queen’s 90th birthday in 2016.
  • Highways England and Essex County Council will work together to study options for dualling the A120 between Braintree and Marks Tey.
  • The government is inviting bids for a new round of Enterprise Zones like those already up and running successfully in the East of England such as Lowestoft and Great Yarmouth.
  • The establishment of a network of National Colleges right across the country to provide high quality professional and technical routes into employment.
  • £90 million to extend the Coastal Communities Fund, from which the East of England has already benefitted significantly.

Notes to editors

These measures build on investment and support for the East of England already committed to by the previous Government and reaffirmed today, including:

  • The commitment to invest £4.2 billion in transport infrastructure in the East of England over this Parliament.
  • Work on the Lowestoft Third River Crossing and Ipswich West Dock Crossing will be taken forward, with £4 million committed so far.
  • The government will improve rail passenger journey times between London and the East of England, backing the ‘Ipswich in 60’ and ‘Norwich in 90’ rail plans.
  • The government has committed to road projects including substantial upgrades to the A14 and A47, and widening and upgrading the A12, to better connect east coast ports to the rest of the UK. The government will invest £1.5 billion to improve the roads in the East of England over the next six years.
Published 8 July 2015