A new Employment Allowance will take £2,000 off the National Insurance bill of every employer – open to businesses, charities and community amateur sports clubs.
This will take 68,000 small businesses in the South East region out of having to pay any tax on jobs at all.
Employers will be able to hire one extra person on £22,400 a year, or four people working full-time on the minimum wage, without paying any National Insurance.
Mr Lancaster (pictured, right), MP for Milton Keynes North, said: “This new tax cut to help businesses take on more people will be great news. It will make it cheaper and easier for firms to hire new employees, helping to give more people the security and stability of a regular pay packet.”
Milton Keyes South MP Iain Stewart (also pictured) added: “These are really strong moves by the government. Businesses, particularly small and medium-sized businesses, across Milton Keynes and the UK will benefit.”
“Individuals will also benefit, being able to keep more of their hard-earned money in their pockets. From Sunday, people can keep £10,000 of what they earn; four years ago it was just £6,500.”
Around 1.2 million employers will benefit from the National Insurance cut, with around a third of all employers taken out of paying employer NICs altogether.
Early last week saw another series of government policies come into effect.
- Corporation tax was reduced from 23% down to 21%, now one of the lowest rates in the world.
- Small high street shops, cafes and pubs now have £1,000 off their business rate bills.
- The Annual Investment Allowance has been doubled so that businesses get 100% relief when they invest in their future.
Mr Lancaster said: “Creating more jobs by backing business and enterprise with lower taxes is all part of the Conservatives’ long-term economic plan.
“There are already more than 1.3 million people in work since the election but the job is not done and that is why the government is sticking with its plan to build a stronger, more competitive economy.”
Mr Stewart added: “Milton Keynes is a hub for businesses, big and small. The tax cuts and reliefs, I hope, will make a real difference to the success of companies.
“We need to invest in all areas of our economy and we are doing that. Our economy is doing well but we must keep to the long term plan.”
