Mini Budget at a glance
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- IR35 rules to be simplified and reforms of latter years repealed.
- 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 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.
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