SOUTH Cumbria's MPs have reacted to the Chancellor of the Exchequer's official 'fiscal event' announcements.

Kwasi Kwarteng set out plans on Friday morning before the House of Commons for major tax cuts and increased spending in response to the economic crisis currently facing the United Kingdom.

Highlights include:

Income tax

Cut in basic rate of income tax to 19% from April 2023

Government estimates 31 million people getting £170 a year more

Currently, people in England, Wales and Northern Ireland pay 20% on any annual earning between £12,571 to £50,270 - rates in Scotland are different

45% higher rate of income tax abolished for England, Wales and Northern Ireland taxpayers

One single higher rate of income tax of 40% from April next year

National Insurance

Reverse recent rise in National Insurance (NI) from 6 November

Workers and employers have paid an extra 1.25p in the pound since April

New Health and Social Care Levy to pay for the NHS will not be introduced

Stamp duty

Cut to stamp duty which is paid when people buy a property in England and Northern Ireland

No stamp duty on first £250,000 and for first time buyers that rises to £425,000 - comes into operation today

Energy

Freeze on energy bills, which the government claims will reduce inflation by 5 percentage points

Total cost for the energy package expected to be around £60bn for the six months from October

Shopping

VAT-free shopping for overseas visitors

Planned increases in the duties on beer, for cider, for wine, and for spirits cancelled

Fellow Conservative, MP for Barrow and Furness Simon Fell, responded positively.

"These are welcome interventions to improve growth in the economy and to make sure that people keep more of the money that they earn," he said.

"I've heard from so many local people and businesses that they are concerned about the cost of energy - this plan delivers on that, and it's good to hear from people like the FSB, UK Hospitality, and the Association of Convenience Stores that it provides the reassurance that their members were looking for.

"Alongside the Energy Price Guarantee, the tax cuts that are being proposed are welcome too - this will directly support people with the cost of living and allow them to make more choices about how they spend their money. 

"These are the biggest tax cuts in 50 years and should directly help to grow the economy.

"Finally, it was great to see priority being given to the A595 and discussion of Investment Zones - I look forward to working with the Chancellor and his team on making those work for Barrow and Furness."

Mr Fell's neighbour, MP for Westmorland and Lonsdale Tim Farron took to the floor of the House of Commons, accusing the government of ignoring rural communities in Cumbria by making it easier for people to buy second homes.

Mr Farron said: "Surely the Chancellor understands that the cut in stamp duty will do nothing to help 99 per cent of people who can't afford their own home.

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"But it will do huge amounts to make it easier and more attractive for people who want second, third, fourth, and fifth homes in my constituency, in Cumbria, and in other rural parts of Britain.

"Does he not realise the damage that excessive second home ownership and non-permanent occupied dwellings does to communities like mine, those in Cornwall, Northumberland, and the rest of the country.

"Will he listen to rural Britain and stop backing second homeowners and back our communities instead?"

Responding, Mr Kwarteng said: "We are backing his communities by reducing taxes, by creating the potential for investment zones, by the energy intervention – a whole host of measures that are backing ordinary, hard-working people."

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