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

Inflation

• Government plan will reduce peak inflation by 5%
• Chancellor: Bank of England independence is “sacrosanct”

Growth

• 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

Strikes

• Government will impose minimum service levels on striking industries
• Will legislate for any pay offers be put to a member vote

Investment zones

• Growth needs to be targeted to individual areas, so government is introducing investment zones.
• Zones will have reduced business rates and planning regulation.

Tax

• 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
£/$ 1.1163
£/€ 1.1435
10 year gilt yield 3.49%