A Budget that delivers on our plan for working people in Yorkshire and Northern Lincolnshire

HM Treasury

July 8
14:00 2015

Chancellor of the Exchequer, George Osborne today used his Summer Budget to set out the next stage in delivering on the governments plan for working people in Yorkshire and North Lincolnshire and to build the Northern Powerhouse.

This Budget has delivered a tax cut for 2.3 million people in Yorkshire and Northern Lincolnshire, taken an additional 51,000 out of income tax all together, announced new opportunities for up to 360,000 apprentices and offers more childcare to working parents. Since 2010, there are 163,000 more people in work in Yorkshire and Northern Lincolnshire, and 98,900 more businesses.

Putting radical devolution plans in Yorkshire and ambitious transport investment across the whole of the north at the heart of his plans to take the Northern Powerhouse to the next level.

Chancellor of the Exchequer George Osborne said:

My budget today puts security first. It delivers economic security so Britain lives within its means, financial security for families, and national security for all.

A new National Living Wage for 170,000 people, and an income tax cut for millions more provides new support for people right across the North.

At the heart of our plans is an ambition to build a world class transport system, to hand over new powers to local leaders and to invest in science, education and skills.

This is a Budget that delivers on our plan for working people in Yorkshire and Northern Lincolnshire and sets out the next steps in building the Northern Powerhouse.

Measures announced in the Budget will support working people with:

  • A tax cut for 2.3 million people in Yorkshire and Northern Lincolnshire with a rise in the Personal Allowance and an increase in the higher rate threshold. 51,000 more people will be taken out of income tax altogether.
  • A significant pay rise for 170,000 working people across Yorkshire and Northern Lincolnshire with the introduction of the National Living Wage.
  • A doubling of the amount of free childcare for working parents of three and four year olds meaning thousands of families in Yorkshire and Northern Lincolnshire will now receive 30 hours of free childcare a week.
  • Thousands of family homes in Yorkshire and Northern Lincolnshire taken out of Inheritance Tax altogether as a result of the increase in the Inheritance Tax allowance.
  • New opportunities for up to 360,000 apprentices as part of ambitious plans to grow the number of apprentices across the country.

The Budget also backs businesses in the region with:

  • A tax cut for businesses across Yorkshire and Northern Lincolnshire with a cut in the main rate of corporation tax to 19 per cent in 2017 and 18 per cent in 2018.
  • An extra 1,000 for every business thanks to an increase in the Employment Allowance to 3,000.
  • Further support for 8,000 businesses in Yorkshire and Northern Lincolnshire from a significant increase in the Annual Investment Allowance to 200,000.

The Summer Budget also includes investment directly to support Yorkshire and Northern Lincolnshire:

  • Revolutionary deals with Leeds/West Yorkshire and Sheffield/South Yorkshire are making progress in return for different governance models including the creation of a directly-elected mayor.
  • 30 million for an ambitious new transport devolution package for the whole of the North which will give Transport for the North statutory status and responsibilities. As part of this investment the government is now committing to:
    • devolving far reaching powers over transport to the Norths Mayor-led city regions to deliver fully integrated public transport systems supported by contactless payment technology.
    • establishing TfN as a statutory body with statutory duties to set out its transport policies and investment priorities in a long-term transport strategy for the North.
    • appointing a Chair, Chief Executive and executive team for TfN by the end of 2015 to accelerate TfNs work programme, with an update on the Northern Transport.
    • Working with TfN to advance the introduction of Oyster-style smart and integrated ticketing across bus, tram, metro and rail services throughout the region, making this on of the top priorities for TfNs newly accelerated work programme.
    • working with TfN to push forward plans to transform east-west rail and road connections via TransNorth and options for a new TransPennine tunnel.
  • To ensure even further that cities have greater say over their own local economies, the government will consult on devolving powers on Sunday trading to city mayors and local authorities.
  • 23 million of investment in six Next Digital Economy Centres across the country including one in York.
  • The creation of four Connected Health Cities across the North, assembling experts and technology to provide better care for patients by promoting innovation through using data. This builds on the 20m invested in Health North earlier this year and which will go live in Autumn 2015.
  • New Regius Professorships across the country will be set up in order to recognise excellence in universities across the UK. The competition will be launched later this year, with a view to making awards to celebrate the Queens 90th birthday in 2016.
  • The government is inviting bids for a new round of Enterprise Zones like those already up and running successfully such as the Humber Enterprise Zone.
  • Setting a target of increasing overseas visits to Yorkshire by 25% by 2020.
  • 90 million to extend the Coastal Communities Fund, from which the Yorkshire and Northern Lincolnshire has already benefitted significantly.

Notes to editors

These measures build on investment and support for the Yorkshire and Northern Lincolnshire already committed to by the previous Government and reaffirmed today, including:

  • The commitment to invest 6.4 billion in transport infrastructure in Yorkshire and North Lincolnshire over this Parliament.
  • By the end of this parliament, the government will have delivered, on the Northern and TransPennine Express routes, free wifi for passengers, an increase in capacity of more than one-third and 200 new services every single day and a modern fleet of new trains to replace the old and outdated Pacer trains.
  • By the end of this parliament the Northern Hub programme will also be complete delivering significant improvements to rail journeys from as far as Newcastle and Hull in the East to Chester and Liverpool in the west.
  • On top of this, the government will be delivering 65 new InterCity Express trains on the East Coast Mainline to Doncaster, York and Newcastle, bringing journey times down and providing people with more seats, reducing journey times from London to Leeds by 14 minutes. And studying the potential for 140mph running on the East Coast rail line.
  • The government is also improving road connectivity in the North by upgrading the A628 and dualling the A61, and upgrading the final stretch of the M1/A1 route between Newcastle and London to motorway. The government will look into the case for renaming the A1(M) north of Leeds as the M1.
  • On top of this, the government remains absolutely committed to pushing forward with plans for delivering High Speed 2 (HS2) to the North by the early 2030s, which will deliver transformational step-changes in journey times, capacity and connectivity for cities across the region. The government will bring forward a Hybrid Bill for the first stage of Phase 2 in this parliament.
  • This government reaffirms its support for the target of increasing overseas visits to Yorkshire by 25% by 2020. This government welcomes the work British Cycling is undertaking to assess the feasibility of a UK bid to host the Road World Championships.

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