Tax Changes:

• More Tax-Free Money:
  • Individuals can earn up to £14,750 without paying tax.
  • Couples can earn up to £29,500 tax-free.
• Lower Tax Rate:
  • The basic tax rate stays at 10% on the next £6,500 of income (or £13,000 for couples).
• Cheaper Higher Tax:
  • The higher tax rate drops from 22% to 21%.
  • You pay 21% on income above £21,250 (or £42,500 for couples).
• High Earners:
  • For every £2 earned over £100,000, your tax-free allowance drops by £1.
  • At £129,500 or more, you lose your tax-free allowance completely.
• Non-Residents & non-corporate entities:
  • Non-residents and non-corporate entities now also pay the lower 21% rate.
• Tax Cap Increase:
  • The limit on your maximum tax liability in a year rises from £200k to £220k.

National Insurance (NI) Changes:

• Keep More of Your Pay:
  • The point at which you start paying NI goes from £123 to £125 per week.
  • Other thresholds increase from £160 to £168 per week, meaning you pay NI on less of your salary.
• More Income at Lower NI Rates:
  • The upper limit for lower NI rates rises from £938 to £1,032 per week.

Capital Investment & Long-Term Plans:

• A £300m capital program over five years:
  • £87.4m in 2025-26 for construction and infrastructure.
  • Over £1m for sports facilities and £6.1m for road upgrades.