Kwasi Kwarteng today unveiled in its mini-budget a package of tax cuts worth billions of pounds in a bid to boost growth and end Britain’s ‘cycle of stagnation’.
The Chancellor has already confirmed new investment zones to boost business spending and announced that households will benefit from the reversal of the National Insurance hike from November.
Mr. Kwarteng is also reportedly considering a cut in stamp duty and income tax as he seeks to ease pressure on household finances.
He said: “We are determined to break that cycle. We need a new approach for a new era focused on growth.
“Our goal is to achieve trend growth of 2.5 percent in the medium term and our plan is to expand the supply side of the economy through fiscal incentives and reforms. That way we will have higher wages, more opportunities, and public services, now and in the future.”
Mr Kwarteng is currently speaking in Parliament. We will bring you all the key points from the speech in Parliament as announced.
- The chancellor announced that the government will liberalize planning to accelerate investment. “We’re going out of our way to get Britain building,” he said.
- Mr Kwarteng said the reforms will unravel the “complex patchwork of planning constraints and EU-derived laws that hamper our growth”.
- He also announced new investment zones that will entice businesses through tax breaks.
- He said pension cap reforms will unlock pension fund investment, while £500m will be used to support “new innovative funds”.
- The chancellor announced that the bankers’ bonus ceiling will be lifted and that union rules will be tightened.
- Mr. Kwarteng explained details of the previously announced energy support for households and businesses.
- The Energy Price Guarantee limits the unit price consumers pay for electricity and gas, limiting the average household bill to £2,500
- The Energy Markets Financing Scheme will provide loans to cash-strapped energy suppliers, while companies get discounts on their bills.