A FOODBANK boss says cuts as part of the autumn statement will help people struggling this winter but argued more should be done.
Chancellor Jeremy Hunt cut national insurance for 27 million people in a highly political autumn statement ahead of a general election expected next year.
The two percentage point reduction in the main rate will save someone earning £35,000 more than £450.
The Chancellor also confirmed that a tax break allowing firms to cut their tax bills if the invest in new equipment will be made permanent in what he claimed was the “biggest business tax cut in modern history”.
Mr Hunt said universal credit and other benefits will increase by 6.7 per cent, in line with September’s inflation figure.
The national living wage will rise by £1.02 to £11.44 from April, with the policy extended to cover workers aged 21 and over for the first time rather than 23 and over.
It means the lowest paid will receive a boost of £1,800 a year.
He also extended a 75 per cent business rates relief for retail, hospitality and leisure until 2025.
Mike Beckett, boss at Colchester Foodbank, in Tollgate Retail Park, believes more needs to be done.
He said: “Increasing the minimum wage and reducing the national insurance burden will help people that are struggling this winter, so we are pleased and it will help the people that use the food bank.
“However, we are concerned that more could be done and should be done.
“People will still have a difficult time within this cost of living crisis.”
Citizens Advice Essex Director, Martin Lord, argued there were some "crumbs of good news".
But he said: "This has to be taken in context.
"Living standards are still expected to drop and have been dropping, and our experience is that those on the lowest household incomes, which constitutes the majority of the 50,000 people we support across the county each year, have been affected most by the cost of living crisis.
"Even in the context of improved growth, and the changes announced today, life for these households is likely to only get tougher more slowly rather than improve overall."
Steve Hurdle, co-owner of the popular vintage fashion retailer, Best Days Vintage, in Eld Lane, said he was positive following the announcements.
He said: "From a perspective of a small business owner, I would welcome any reduction in business rates, anyway we can reduce costs in a climate where our fixed costs are increasing, is more than welcome.
"It will hopefully instil a small bit of confidence back into the people and the economy."
The Autumn statement is an annual event political event where the chancellor gives an update to the House of Commons on the state of the UK’s economy, and it delivers major announcements.
To read the full statement and find out about more of the government’s plans for next year and onwards, head to tinyurl.com/mwkzjaue.
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