Using a dynamic tax model* the Taxpayer’s Alliance (TPA) finds the fiscal measures announced by Kwasi Kwarteng today will boost output by £99 billion over the next 10 years. This would see the Treasury recuperate 75% of forgone revenue. The most effective budget bolstering measure is the scrapping of the rise in corporation tax, which accounts for over half of the prospective gains. The mini-budget’s benefits also extend to average weekly earnings, which are set to rise by £22. The Growth Plan certainly lives up to its name…

Duncan Simpson, chief economist at the TPA adds:

“The chancellor has been true to his word, providing a package that will have a significant impact on long run economic growth… The package today represents a bold first step towards the liberalising policies which will be required to meet the government’s growth aspirations.” 

A great start…

*The TPA’s dynamic tax model was built in collaboration with the consultants Europe Economics, the firm where Matt Sinclair worked before moving to Downing Street to become the PM’s chief economic adviser. Full briefing note can be downloaded here.