Key points: Kwasi Kwarteng unveils tax cut plan in mini budget

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Kwasi Kwarteng is unveiling a multibillion-pound package of tax cuts to boost growth and end Britain’s “cycle of stagnation” in his mini-Budget today.

The chancellor has already confirmed new investment zones to boost business spending and announced that households will benefit from a reversal in National Insurance growth from November.

He said: “We are determined to break this cycle. We need a new approach for a new era focused on growth.

“Our medium-term goal is to achieve a trend growth rate of 2.5 percent, and our plan is to expand the supply side of the economy through tax incentives and reforms. This will ensure higher wages, greater opportunities, and funding for public services, now and in the future.”

Mr. Kwarteng is currently speaking in Parliament. We will bring you all the key highlights from the speech in Parliament as they are announced.

tax

  • The chancellor announced that the planned increase in corporate income tax from 19% to 25% next year has been cancelled.
  • He also confirmed that the increase in the national insurance by 1.25 percentage points will be abolished in November.
  • The Office for Tax Simplification – the independent body that advises the Chancellor on tax – will be abolished.
  • A recent change in tax rules for off-payroll workers will be reversed.
  • Planned increases in duty rates for beer, cider, wine and spirits will be cancelled.

Business investment

  • The chancellor has announced that the government will liberalize planning to boost investment. “We are getting out of the way for Britain to build,” he said.
  • Mr Kwarteng said the reforms would remove “a complex mix of planning restrictions and EU-derived laws that limit our growth”.
  • He also announced new investment zones which will attract businesses to nearly 40 areas with National Insurance tax breaks, stamp duty and business rates.
  • He said reforms to the pension benefit cap would free up investment by pension funds, while £500m would be set aside to support “new innovative funds”.
  • Mr Kwarteng expanded schemes aimed at encouraging investment in start-ups beyond 2025, including the Enterprise Investment Scheme.

Labour market

  • The chancellor announced that the upper limit of bonuses for bankers would be abolished, and trade union rules would be tightened.

Energy

  • Mr. Kwarteng presented details of previously announced energy support for households and businesses.
  • The Guaranteed Energy Price will cap the unit price consumers pay for electricity and gas, capping the average household bill at £2,500.
  • The Energy Markets Financing Scheme will provide loans to cash-strapped energy suppliers, while businesses will get a discount on their bills.

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