But we were clear that once inflation was under control and the public finances were on a sustainable path, we would cut taxes.
Because of the progress we have made, with inflation back to normal and debt on track to fall from next year, we have been able to afford to begin cutting taxes as part of our plan to reward work and grow the economy,
all without increasing borrowing or cutting spending on public services.
In the first half of this year, we began cutting National Insurance.
It is unfair that working people pay two taxes on their income – income tax and National Insurance – when other people only pay income tax.
Our long-term ambition, when it is affordable to do so, is to keep cutting National Insurance until it’s gone, as part of our plan to make the tax system simpler and fairer.
This comes on top of the significant above inflation increase to the personal allowance we have delivered since 2010, nearly doubling it from £6,475 to £12,750.
This means the tax burden on workers is falling, with the average earner paying the lowest effective personal tax rate since 1975 – lower than in the US, France, Germany or any G7 country.
As a further downpayment on our long-term ambition to abolish National Insurance, there is one group for whom we will make that a reality in the next Parliament.
Last year, the main rate of National Insurance for the self-employed stood at 9%.
To recognise the unique contribution of these risk-takers and entrepreneurs to our economy and the insecurity they face without the rights and protections that employees enjoy, we will abolish it entirely by the end of the next Parliament.
This will not affect their entitlement to the State Pension.
This is a massive simplification of the tax system which means that 93% of self-employed people – four million of them – will no longer pay selfemployed National Insurance.
We introduced the National Living Wage in 2016 and this year achieved our ambition of raising it to two thirds of median earnings – increasing it to £11.44 per hour
and extending it to cover all workers aged over 21.
This ended low pay for those on the National Living Wage, with someone working full-time receiving a pay rise worth £1,800.
As a result of our personal tax cuts and increases in the minimum wage, the take-home pay of someone working full time on the National Living Wage has gone up by 35% in real terms since 2010.
We will maintain the National Living Wage in each year of the next Parliament at two-thirds of median earnings.
On current forecasts, that would mean it rising to around £13 per hour, up from a minimum wage of £5.80 under Labour in 2010.
The number of payrolled employees is at a near record high,
and there are around four million more people in work than when we came to office in 2010.
We believe that those who have worked hard during their lives should have dignity and security in their retirement.
We came to power in 2010 after Labour had hit pensioners with a £118 billion pensions tax raid and a paltry 75p per week increase to the State Pension.
Since 2010, we have made it a priority to give people peace of mind in their retirement.
We introduced the Triple Lock, which has seen the basic State Pension rise by £3,700 since 2010.
This year, the new State Pension increased by £900.
We will continue to do everything we can to provide pensioners with dignity in retirement and ensure the new State Pension is not dragged into income tax for the first time in history by introducing the new Triple Lock Plus.
This has two elements: 1. Continuing to uprate the State Pension in line with the highest of prices, earnings or 2.5%.
On current forecasts, this will mean the new State Pension increases by a further £430 in April next year to £11,970; and increases by £1,685 a year to £13,200 by the end of the Parliament.
From April 2025, we will increase the personal allowance for pensioners by introducing a new age-related personal allowance.
This is a tax cut of around £100 for eight million pensioners next year – rising to £275 a year by the end of the Parliament.
Under our new Pensions Tax Guarantee, the Conservatives will not introduce any new taxes on pensions.
We will maintain the 25% tax free lump sum
and maintain tax relief on pension contributions at their marginal rate.
We will not extend National Insurance to employer pension contributions.
We are carefully considering the Ombudsman report into WASPI women and will work with Parliament to provide an appropriate and swift response.
By opposing the Triple Lock Plus, Labour’s Retirement Tax will mean millions of pensioners paying more tax.
It will also mean that for the first time in history, someone whose only income is the new State Pension will be dragged into paying income tax, which alongside making them worse off means the administrative burden of going through a tax assessment.
It is vital we make sure people and companies are paying the tax they owe.
That’s why, since 2010, Conservative Governments have introduced over 200 measures to tackle tax non-compliance.
In total across all the fiscal events we have delivered since 2010, the OBR has scored these measures as raising £95 billion across the forecasts it has produced – £6.7 billion for each year.
The Conservatives have a plan to deliver a brighter future for the UK, one where families are supported and children are given the best chance to gain the skills they need to succeed.
We are delivering the largest ever expansion of childcare in history: Working parents of two-year-olds are now able to access 15 hours of free childcare, with over 200,000 two-year-olds already benefitting from the offer.
Once the roll out is completed, families will save an average of £6,900 per year.
and are helping the sector, including childminders, to hire more staff, create more places and spend less time on paperwork.
But families’ needs don’t stop when children start primary school, which is why Family Hubs support families all the way up until children reach adulthood.
They back families in the early years, helping with things like breastfeeding support, antenatal care and early learning interventions, in addition to services like relationship support, stopping smoking services and youth services.
Our plan has already delivered Family Hubs in over 75 local authorities.
We will improve the experiences of children in social care, because every child deserves to live in a safe and loving home.
We will create more places in children’s homes