Kwasi Kwarteng will unveil his highly anticipated mini-budget this morning, with some 30 new fiscal measures due to be announced.
He is expected to announce sweeping tax cuts of at least £30bn, with experts predicting it will be the biggest tax-cutting event for 34 years – and it’s not even a full budget.
Prime Minister Liz Truss hopes the tax cuts will boost the economy, increase its revenues and prevent a huge increase in the national debt.
Some 30 new measures are set to be unveiled by the Chancellor this morning, which is expected to include:
- Axing the planning corporation tax rise
- Cutting income tax
- Scrapping bankers’ bonuses
- Stamp duty holiday
- Changes to Universal Credit
- Special Investment Zones
- New infrastructure projects
- VAT reductions
On Thursday, Mr Kwarteng confirmed that the national insurance hike introduced by Boris Johnson’s government to pay for social care and tackling the NHS backlog will be reversed.
Simon Clarke, the Levelling Up Secretary, branded the mini-budget a “game-changing financial statement” on Friday morning and said the measures were designed to return the UK to the level of growth seen before the financial crash in 2008.
He told Sky News that Mr Kwarteng would “tackle what is a record high tax burden on families and businesses, reflecting clearly the fact we’ve gone through some extraordinarily difficult years but setting out a fundamentally new approach to go for growth to make sure that we we win the argument that a more successful enterprise economy is good for the whole of this country”.
Live updates will begin at 9:30am, when the Chancellor delivers his speech to MPs.