RE: Mini budget.23 Sep 2022 12:24
Main points.....
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 tax. Top rate now 40%.
Basic rate of income tax cut to 19% from April.
Enjoy it while you can, because if the next government is a Labour or Labour Lib Dem alliance you've only got yourselves to blame.
Biggest tax cuts since the 70's.
Investment is the key to growth.
I commend this budget to the BB. :-)