The new financial year came into effect on 6 April and this year, that is good news for everyone.  After two difficult years with global high inflation eroding the value of our money, it is starting to feel like a corner has been turned.

The latest inflation figures we have showed a fall to 3.4% in February, with all the credible predictions saying that further falls to 2% or less, are expected soon, probably where we are right now when April’s inflation data is released in a few weeks’ time.  

Last week, the energy price cap was reduced by 12.3%, saving a typical family £238 a year.  While still higher that what we’d like, this now means that energy prices for consumers are now at their lowest levels since before Russia's brutal and unprovoked invasion of Ukraine.

The new tax year sees National Insurance contributions drop from 10% to 8%.  When combined with the 2% January reduction, our Conservative government have cut National Insurance by a third and that is going to be very noticeable in our pay packets throughout the year.

This is a statement of intent and a strong direction of travel.  Rishi Sunak and Jeremy Hunt have made it clear that whenever it is economically responsible to do so, they will keep cutting National Insurance until it is gone, ending the double tax on work completely.  This will ultimately result in a simpler tax system which rewards hard work.

We are also seeing the biggest ever increase in the National Living Wage, going from £10.42 to £11.44 an hour, which is an increase of 9.8%.  The State pension has also just increased by 8.5%, worth an extra £900 a year.  Thanks to the triple lock, which the Conservatives introduced, the state pension has increased by £3,700 since 2010 and it's helped lift 250,000 pensioners out of poverty.  My party is committed to maintaining the triple-lock whereas the Labour have not committed to it.

While it doesn’t suit Labour’s negative narrative, the cost of living squeeze will be easing significantly this year and we should all welcome that.  

Councillor Duncan Crow, Leader of Crawley Borough Council Conservative Group

10th April 2024