Wednesday, November 30, 2022

How much extra money will Wales receive after the autumn budget?

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The Welsh Government is under no obligation to spend the money on health or education but is likely to do so.

However, the additional financing runs for two financial years and could be eaten up by inflationary effects.

Elsewhere, Jeremy Hunt switched to protect payments to benefit and pension recipients and increase the national living wage to £10.40.

Mr Hunt promised his budget would prioritize “stability, growth and public services” while emphasizing the vulnerable.

“To be British is to be compassionate and this is a compassionate Conservative Government,” he told the Commons to sneers from MPs.

His budget comes as inflation hit a 41-year high on Wednesday at 11.1%, with groceries rising at a 16.5% annual rate – exacerbating the cost-of-living crisis.

But the bulk of his autumn statement was taken up with “difficult” measures to try to plug a gap in public finances which he says was caused by global problems but which many see as the fault of the former prime minister and chancellor.

By freezing income tax thresholds, which is the amount you must earn before you start paying a certain level of tax, more people pay both the base tax rate and the higher tax rate.

And more will pay the very highest rate known as the “extra rate” after announcing the threshold will be lowered.

Instead of having to earn £150,000 before they start paying the 45p rate, people will now start paying when they earn over £125,000.

It is unlikely to affect as many people in Wales as incomes are much lower here.

So far, only around 4,300 paid the additional tariff.

The Welsh Government will also have to decide whether to catch up on the transferred property tax.

Jeremy Hunt said stamp duty cuts for homebuyers in England will be temporary.

When the English cut was announced, the Welsh Government announced that their property transfer tax would also change, so homebuyers would not pay them for properties under £225,000.

The Autumn Declaration was welcomed by the leader of the Welsh Conservatives.

Andrew RT Davies said: “We have a duty not to leave our debt to the next generation.

“The Prime Minister and the Chancellor acted decisively today to put our public finances back in order.

“The Welsh Conservatives particularly welcome the additional £1.2bn for Wales in follow-on funding.

“Although we all have our part to play in this national effort to pay our way, the government has acted to protect the most vulnerable.”

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