Our plan for the economy means that we can cut your taxes responsibly and keep investing in key public services like the NHS. But I want us to start with a little bit of context.
Now, the average person in work earns around £35,000, but you all know that you pay tax on that money twice. First, in income tax and then again in national Insurance.
Now that's unnecessarily complicated because ultimately all that money goes into the same pot and funds the same public services. It's also in some senses unfair, because it means everyone in work pays tax twice, unlike everybody else.
Now, of course, I'd like to be able to cut taxes, but you all know the reasons why that's been difficult over the past couple of years. COVID meant that the government had to step in and support the country with hundreds of billions of pounds.
The NHS, the furlough scheme, the vaccine rollout and the war in Ukraine meant we stepped in again to help people with their energy bills and alleviate some of the impact of high inflation on things like food prices.
But at the start of this year, the economy has turned a corner. What does that mean for you and your family? It means that we've been able to start cutting taxes.
但在今年年初,经济出现了转机。这对您和您的家庭意味着什么?这意味着我们已经能够开始减税。
Last year, the rate of national insurance was 12%, but in January that was cut to 10% and that meant a £450 tax cut for a typical person in work.
The recent budget cut it again to 8%, meaning another £450 tax cut, which means a total tax cut this year of £900 for a typical person in work. And that shows that our plan is working.
Now, ultimately, I'd like to end the unfairness where people in work are paying tax twice on those earnings. I'd like a simpler, fairer tax system where you only pay tax once, and if we stick with our plan, we'll be able to make progress towards that goal in the next parliament.
Well, the ONS recently said that inflation has fallen from 11% down to 4%. The OBR have just said that they expect us to hit our 2% inflation target a year earlier than they previously thought in just a few months time.
The Bank of England recently said that mortgage rates have started to fall. Ofgem have said the energy bills are going to fall by almost £250 in April and the recent budget froze fuel duty.
When it comes to growing the economy, we outperformed expectations last year. The forecasts for this year are positive. Wages have been rising faster than prices for six months and unemployment is low.
We've also seen record investment into the UK from companies like Nissan, Jaguar Land Rover, Ørsted building a massive offshore wind farm, Microsoft. Google. All of that is a huge vote of confidence in our plan and our country and will create thousands of jobs.
When it comes to reducing debt, we have rules that make sure we're on track to reduce debt. The independent OBR just confirmed that we are meeting those fiscal rules and in fact, overall debt will start falling from next year.
The recent budget announced billions more pounds not just to deal with some of the immediate pressures of backlogs, but also to invest in reforming how the NHS works so that it can be more productive in the future. And that's been warmly welcomed by the NHS CEO.
Well, that's our plan. What's the alternative? Keir Starmer been the Leader of the Opposition for over four years now, and in that time he can't say what he would do differently because he prefers to snipe from the sidelines.
But one thing you may have heard is the Labour Party's promise to spend £28 billion on different green projects. Now, they were very committed to that policy for a while, then they U-Turned on it.
But this being Keir Starmer it wasn't even a full U-turn, because it turns out they're still committed to spending money on all those projects. But because they don't have a plan, they can't tell you how they're going to pay for it.
But we all know what that means. It means higher taxes, higher energy bills for you and higher borrowing, leaving your kids to pick up the tab. And that means a worse future for you and your family.