The Economy and Inflation, Some Better News at Last

Chiswick Homefields councillor Gerald McGregor reports back

Cllr Gerald McGregor
Cllr Gerald McGregor

November 25, 2023

Going into the Autumn Statement the Chancellor already knew that he had hit the Government’s target of halving inflation by the end of 2023.

Whilst this is largely positive news, in March the Office of Budget Responsibility estimated that inflation would fall to 0.9 per cent in 2024, meaning that inflation remains fairly persistent for a longer period; this could impact on future decisions by the Bank of England’s Monetary Policy when it comes to setting the base interest rate in future which impacts on mortgages.

The latest forecast shows that GDP growth will reach 0.6 per cent this year before rising to 0.7 per cent next year. In the following year, GDP growth is forecast to rise again to 1.4 per cent before growing to 1.9 per cent in 2026.

National Living Wage (NLW)

Will rise to £11.44 per hour from 1 April 2024, and the NLW will be expanded to include 21-year-olds for the first time by lowering the age threshold.

Support for Small and Medium sized Businesses and Tax allowances

Hounslow has large numbers in this category, in particular hospitality and retail, with Heathrow travel and leisure sectors being particularly important.

Having run a small business himself, the Chancellor said that he understood the pressures they faced and wanted to boost their growth and productivity. To support those businesses, the 75 per cent business rates discount would be extended. The Chancellor also confirmed that he would freeze the small business multiplier for a further year.

However, his big announcement was that he would permanently extend the Full Expensing capital allowance, to provide certainty to all businesses looking to invest.

Originally due to end in 2026, the establishment of this Corporation Tax relief as a permanent allowance is thought to be worth over £10 billion a year – making Full Expensing the biggest business tax cut in modern British history according to the Government.

Securing the Triple Lock Pension

Many of us in Chiswick will always have some sort of anxiety regarding pensions. Especially in a cost-of-living crisis there is always uncertainty with finances in this climate. The chancellor was able to save the continuing capacity of the government to keep the Triple Lock in place. Boosting pensions, in line with the Triple Lock, by 8.5 per cent, ensuring dignity in older age for those who have worked their entire lives. The Government are honouring the Triple Lock and uprating the State Pension by 8.5 per cent, this means the basic State Pension will be £3,750 higher than in 2010.

Assisting with the Cost of Living in Hounslow

A dominant factor in many people’s lives has been imported high inflation rates. Whilst inflation has fallen, many individuals are still experiencing the daily impact of higher shopping costs. The Chancellor wanted to make it clear that the Government was there to support people.

The announcement of a cut to the employee National Insurance rate from 12 per cent to 10 per cent from 6 January 2024 means that individuals earning the national average wage of £35,400 will receive a tax cut in 2024-25 of over £450.

To help self-employed individuals, the Chancellor confirmed further changes to National Insurance, including the abolition of Class 2 NIC and the main rate of Class 4 NICs will fall from 9 per cent to 8 per cent – providing further savings to the self-employed.

The Chancellor also confirmed that the National Living Wage (NLW) would rise to £11.44 per hour from 1 April 2024, while the NLW will be expanded to include 21-year-olds for the first time.

Numbers courtesy of Chartered Accountants Midgely Snelling & co in Staines and their quick response Budget Report.

Reporting Back on The Council

Everything this Autumn has been standing still (including Chiswick Traffic) whilst the local authority avoids meeting scrutiny or questions from members of the public and their councillors. We have yet to hear about the budgeted council tax for next year and the recent cabinet meeting passed a slew of business with a lengthy agenda for the Council meeting on Tuesday 28 November. The administration appears not to want the bother of having regular meetings. The risk of Covid is reduced yet we are nowhere near the monthly meetings held in recent history. Members of the cabinet appear more concerned about external matters than the interests of the people of Chiswick and Hounslow.

Councillor Gerald McGregor

gerald.mcgregor@hounslow.gov.uk

07866 784821

DATES FOR YOUR DIARY

Tuesday 28 November at 7:30pm – Hounslow Borough Council  6th Floor, Hounslow House, 7 Bath Road, Hounslow TW3 3EB Open to Public

Tuesday 5 December from 6:30pm – Chiswick Area Forum

Wednesday 6 December at 6:30pm – Cabinet Question Time

Thursday 7 December at 7:00 – Planning committee

Tuesday, 12 December at 7:00pm – Cabinet 6th Floor, Hounslow House, 7 Bath Road, Hounslow TW3 3EB

Tuesday, 16 January 2024 at 7:00pm Cabinet   6th Floor, Hounslow House, 7 Bath Road, Hounslow TW3 3EB

Tuesday 27 February 2024 at 7:30pm – Meeting of Borough Council (Budget Setting!)   6th Floor, Hounslow House, 7 Bath Road, Hounslow TW3 3EB Open to Public

CONSERVATIVE COUNCILLOR SURGERIES

Chiswick: Every Saturday from 9.30am to 10.30am at Chiswick Library (the eight Conservative councillors take this surgery in turn).

Gunnersbury: First Saturday of the month from 10am to 11am at The Gunnersbury Triangle Club, Triangle Way, off The Ridgeway, W3 8LU (at least one of the Chiswick Gunnersbury ward councillors takes this surgery). 

CONSERVATIVE COUNCILLORS and CONTACTS

Chiswick Gunnersbury (was Turnham Green) ward

Cllr Joanna Biddolph joanna.biddolph@hounslow.gov.uk 07976 703446

Cllr Ranjit Gill ranjit.gill@hounslow.gov.uk 07976 702956

Cllr Ron Mushiso ron.mushiso@hounslow.gov.uk 07976 702887

Chiswick Homefields ward

Cllr Jack Emsley jack.emsley@hounslow.gov.uk 07977 396017

Cllr Gerald McGregor gerald.mcgregor@hounslow.gov.uk 07866 784821

Cllr John Todd john.todd@hounslow.gov.uk 07866 784651

Chiswick Riverside ward

Cllr Gabriella Giles gabriella.giles@hounslow.gov.uk 07966 270823

Cllr Peter Thompson peter.thompson@hounslow.gov.uk 07977 395810  

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