Under the prevailing narrative of “a new era”, freshly installed Chancellor Kwasi Kwarteng has unveiled his Mini Budget, promising to “turn the vicious cycle of stagnation into a virtual cycle of growth”.Here are the key points at a glance:
Tax and NI
Recent 1,25 percentage point rise in NI will be reversed from 6th November
The planned Health and Social Care Levy will not be introduced
Cut in basic rate of income tax to 19% from April 2023
45% higher rate of income tax scrapped
There will be a single rate higher rate of income tax of 40% from April 2023
Rise in Corporation Tax, due to increase from 19% to 25% in 2023, will be cancelled
IR35 rules to be simplified and reforms of latter years repealed.
Energy
There is to be a freeze on energy bills, which the government projects will reduce inflation by 5 percentage points
The total energy package to help individuals and businesses is expected to cost £60m.
Stamp duty
Stamp duty will be cut - from today there will be no stamp duty on the first £250,000, rising to £425,000 for first time buyers
Other key points
Planned increases in duty on beer, cider, wine and spirits is to be cancelled
Rules around universal credit are to be tightened
VAT- free shipping for overseas visitors to boost tourism
The rules that limit bankers’ bonuses are to be abolished
Relaxation in planning rules and red tape in order to speed up building.
We await the detail of today’s fiscal statement, and analysis of the expected impact of some of the measures announced.Please follow us on social media for updates by clicking the icons below, wherever you hang out online.
