The chancellor has delivered his mini-budget – here are the main points, with political analysis
- Kwasi Kwarteng announces sweeping tax cuts in mini-budget
- Live updates: Kwasi Kwarteng announces mini-budget
Kwasi Kwarteng says the government was never going to let households face soaring energy bills caused by Vladimir Putin’s war in Ukraine, telling people “help is coming” with the rising cost of living.
Kwarteng announces the additional rate 45% band for income tax will be scrapped entirely.
The 40% higher rate will remain.
The basic rate of income tax will be cut from April 2023 from 20% to 19%.
Kwarteng confirms the national insurance rise introduced earlier this year will be cancelled from 6 November.
Reversing the tax rise will put £19bn a year back into the economy.
Kwarteng says companies will be able to use this to “reinvest, create jobs, raise wages, or pay dividends which support our pensions”.
In the current system, there is no stamp duty to pay on the first £125,000 of a property’s value. It will be doubled to £250,000.
IR35 rules – which apply to contractors – will be simplified to remove “unnecessary complexity and cost” for businesses.
Planned increases in duty rates for beer, wine and cider will be cancelled.
Continue reading…
