Secretary of State for Wales Cheryl Gillan has today, 21st March welcomed the Chancellor’s Budget Statement, which will continue to support families and business, while stabilising the economy and support long-term economic growth.
The Chancellor of the Exchequer today announced that the UK Government will raise the personal tax allowance by £1,100, increasing the amount an individual can earn before paying tax to £9,205. In Wales this will lift an additional 42,000 people out of income tax and benefit 1.1m individuals. This means 95,000 people in Wales have been taken out of income tax since the Coalition came to power.
The Budget also highlighted plans to raise the Child benefit individual threshold for the withdrawal of child benefit to £50,000, which will benefit 21,000 households in Wales. There will also be a reduction in the main rate of corporation tax by one per cent to 24 per cent year on year to 22 per cent in 2014, making it the most competitive in the G7.Mrs Gillan said: “Today’s Budget will have a fair and positive impact on Wales, targeting those in need while maintaining the Coalition’s commitment to creating a fairer tax system to support growth.
“I am pleased to announce Wales has secured an additional £11.7 million in funding, while the rest of the UK is staying at the same level, bringing the total additional resources given to the Welsh Government since coming to power to nearly £500 million.
“We are committed to giving the Welsh Government funds and support to build strong enterprise zones in Wales, making enhanced capital allowances available, starting with Deeside in North Wales. This will support growth, create jobs and enable funds for machinery investment to be available from 1 April 2012. Subject to receiving strong and robust business cases from the Welsh Government, we will look to agree funding for additional sites in Wales.
“The Coalition has also committed to work with the Welsh Government to further consider electrification of the Cardiff valley lines later this year, helping to deliver lower operating costs and improved services.
“Funds of up to £12 million have been granted for the already announced Cardiff broadband ‘super-connected city’ project, benefiting up to 142,000 residents and 10,000 businesses. There has also been an additional £50 million announced for funding the UK for a second wave of another 10 super-connected cities, which cities in Wales such as Swansea and Newport may be able to bid for.
“With Wales’s strong creative industries sector, I also welcome the announcement on corporation tax reliefs for video games, animation and high-end television industries.”
**Notes to Editors**
**1. We are introducing a reduced rate of VAT of 5 per cent, which will apply to small cable operated transport systems in the UK, including Llandudno.**
To improve mobile telecommunications networks in mobile black spots, we are investing £150 million across the UK, which will include the A470 (T) between Llandudno and Cardiff.
The Government has also accepted the Low Pay Commission’s recommendation for below inflation increases to the National Minimum Wage, protecting earnings of the low paid, while supporting employers and helping to protect jobs in Wales (where the LPC estimates there are over 70,000 minimum wage jobs).
For more information on the Chancellor’s announcement, go to:**http://www.hm-treasury.gov.uk/**