+++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

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%

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mdi-account-multiple-outline Kwasi Kwarteng
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