ANNE MARIE MORRIS IS THE CONSERVATIVE MP FOR NEWTON ABBOT
The Chancellor delivered the Spring Budget recently, with a key focus on cutting taxes, helping small businesses achieve growth and supporting households.
Taxes are too high. The legacy of Covid and paying down that debt, combined with the war in Ukraine and the Middle East form the backdrop of the tough economic conditions the country finds itself in. The Chancellor has done well to cut the main rate of National Insurance Contributions by 2%, just as he did in the Autumn Statement last year - the rate is now down from 12% to 8%. This will put £900 back in the pocket of the average worker. I would have rather seen a reduction in income tax, as it would have applied to those over the age of 65, but at least we have received a tax cut and one that is probably much better than any other party could have offered!
The Chancellor also targeted support for working families by helping parents pay for the costs associated with having children so they can balance their work alongside being a parent. The High Income Child Benefit Charge (HICBC) - paid if you or your partner earn over £50,000 - has been raised to £60,000 impacting 170,000 families. This benefit was in need of reform and whilst the Chancellor has raised the individual threshold now, the plan from 2026 to base the withdrawal of the benefit on family income, rather than individual incomes, seems sensible.
For businesses, the Chancellor listened to the calls from colleagues and I in relation to raising the VAT Threshold. I spoke to the Chancellor back in January and asked for the threshold to be raised to £125,000. So many small businesses cluster around the current £85,000 VAT registration threshold, costing the country hundreds of millions of pounds in economic activity. Although the threshold has not been increased as far as I would have liked it, the £5,000 increase to £90,000 is certainly welcome.
The one area of the Budget that was disappointing was the removal of the Furnished Holiday Lettings (FHL) tax benefits. Whilst I can understand the Chancellor announced these changes to help try and combat the lack of long-term rental properties for local people, this will not do this. Those little cottages in the middle of our wonderful countryside are part of the charm of coming to visit Devon. Trying to get planning permission to turn these properties into residential properties is near impossible! Taking these tax benefits away will instead drive a coach and horses through a really important part of our tourism industry in Devon. We are so lucky to have a thriving rural local tourism economy.
Aside from the Spring Budget, I have been busy in Westminster Hall speaking about South West Water. The debate was lively, and there was agreement from all parties that South West Water need to step up their game in relation to both pollution incidents and water supply. The issue of water supply is just as important as pollution, and there needs to be more focus on it. The overreliance on reduced demand assumptions is concerning, most do not know that a typical full bath uses 80 litres, a washing machine 50 litres a cycle, and the dishwasher 14 litres – nor does there seem to be any consideration given to the estimation that the population of Devon will have increased by 350,000 by 2050. I have a real concern that the supply and demand calculations made by South West Water are unrealistic and that our county faces being put in a similar position like we were in 2022, when we almost ran out of water and year long hosepipe bans ensued.
As always, I have upcoming surgeries in Newton Abbot (5th April), Teignmouth (12th April) and Dawlish (3rd May). If you would like to book a surgery appointment (in-person or virtual) or raise a specific issue, please call my office on 01626 368277 or email annemarie.morris.mp@parliament.uk to arrange an appointment.
