+++Mini-Budget Live Blog+++
Stick with Guido for live updates of Kwasi’s mini-budget announcements. Stay tuned…
Price of Energy
- Government freezes household energy bills at £2,500
- Government will subsidise wholesale energy prices for businesses
- Total cost of energy package for 6 months from October will be approximately £60 billion
- Government plan will reduce peak inflation by 5%
- Chancellor: Bank of England independence is “sacrosanct”
- Government will focus on growth target of 2.5%
Barriers to Enterprise
- Government will bring forward bill to unpick regulation and launch a review into decision making
- Increase disposal of government land to build more homes
- Government will remove cap on bankers’ bonuses
- Government will impose minimum service levels on striking industries
- Will legislate for any pay offers be put to a member vote
- Growth needs to be targeted to individual areas, so government is introducing investment zones.
- Zones will have reduced business rates and planning regulation.
- Tax is “central to solving the riddle of growth”
- Planned rise in corporation tax is cancelled, it will remain at 19%
- Annual investment allowance will not fall to £200,000 as planned, will remain at £1 million
- “we need to embed tax simplification into the heart of government”
- Office of tax simplification abolished, tax simplification mandated in all government departments
- IR35 rules changed: 2017 and 2021 reforms scrapped
- Planned increases in duty for beer, wine and spirits cancelled
- VAT free shopping for overseas visitors
- Increases to National Insurance contributions cancelled
- Stamp duty threshold raised from £125,000 to £250,000; for first time buyers it will rise from £300,000 to 425,000.
- Kwasi will abolish the highest 45% rate of income income tax. Top rate now 40%.
- Basic rate of income tax cut to 19% from April
Ahead of Kwasi’s statement:
FTSE 100 is at 7,120
10 year gilt yield 3.49%