Mini budget: Kwasi Kwarteng to announce tax cuts and support for bills

Mini budget: Kwasi Kwarteng to announce tax cuts and support for bills

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Urgent plans will be announced today to “break the cycle” of the country’s growing economic crisis.

Kwasi Kwarteng will address the House of Commons at 9.30am.

The new chancellor is due to announce tens of billions of pounds of both increased spending and tax cuts in his mini-budget.

Mr. Kwarteng will pledge to ‘turn the vicious cycle of stagnation into a virtuous cycle of growth’ as ​​he sets about addressing the economic ramifications of the cost of living crisis.

Just yesterday, the Bank of England warned that the country had already entered a recession, as interest increases rose to 2.25 from 1.75.

This morning’s statement is expected to include details on how the Government will fund the energy price cap for homes and businesses, and implement many of Prime Minister Liz Truss’s tax cut promises.

Mr Kwarteng is expected to tell the House of Commons: ‘Growth is not as high as it should be, which has made it difficult to pay for public services, which requires taxes to be increased.

‘This cycle of stagnation has led to the tax burden being forecast to reach the highest levels since the late 1940s.

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‘We are determined to break that cycle. We need a new approach for a new era focused on growth.’

He will talk about “difficult decisions” needed to get the economy back under control.

In his speech, Mr. Kwarteng will also likely reveal the creation of low-tax, low-regulation investment zones.

The government is in talks with dozens of local authorities in England to set up dedicated areas, and no further details have yet been released.

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The chancellor will promise “a new era” of growth today (Image: Bloomberg via Getty Images)

The Chancellor is expected to tell the House of Commons: ‘The time it takes to get consent for projects of national importance is getting slower, not faster, as our international competitors move forward. We have to end this.

‘To support growth throughout the country, we must go further, with specific actions in local areas.

‘We will release planning rules on specific agreed sites, freeing up land and accelerating development.

“And we will reduce taxes, and businesses in the designated sites will enjoy the benefit of generous tax breaks.”

The 38 areas under discussion to become an investment zone:

  • Blackpool Council
  • Bedford City Council
  • Bedfordshire Central Council
  • Cheshire West and Chester Council
  • Cornish Council
  • Cumbria County Council
  • Derbyshire County Council
  • Dorset Council
  • Yorkshire East Riding Council
  • Essex County Council
  • Greater London Authority
  • Gloucestershire County Council
  • Greater Manchester Combined Authority
  • Hull Town Hall
  • Kent County Council
  • Lancashire County Council
  • Leicestershire County Council
  • Liverpool City Region
  • North East Lincolnshire Council
  • North Lincolnshire Council
  • Norfolk County Council
  • North Tyne Combined Authority
  • North Yorkshire County Council
  • Nottinghamshire County Council
  • Plymouth Town Hall
  • Somerset County Council
  • Southampton Town Hall
  • Southend-on-Sea Town Council
  • Staffordshire County Council
  • Stoke-on-Trent City Council
  • Suffolk County Council
  • Sunderland City Council
  • South Yorkshire Combined Authority
  • Tees Valley Combined Authority
  • Warwickshire County Council
  • West of England Combined Authority
  • West Midlands Combined Authority
  • West Yorkshire Combined Authority

The government is also considering turning the post-Brexit free ports introduced by Boris Johnson into investment zones, where further deregulation is expected.

Kwarteng has also confirmed plans to reverse the former prime minister’s national insurance increase.

The Chancellor is also set to remove the planned increase in corporate tax from 19% to 25% and remove the cap on bankers’ bonuses as part of broader deregulation of the City.

It has also been reported that he will reduce the stamp duty in a new attempt to boost growth.

Proposals to accelerate a scheduled 1p cut in income tax and to reduce VAT from 20% to 15% across the board are also reportedly under consideration.

Some economists have warned of a sharp increase in government borrowing to finance the wide range of plans.

Labor also warned of increased risk, saying the plans followed 12 years of “low growth and plummeting living standards”.

Unlike a full budget, which would normally take place in November, Mr. Kwarteng will only introduce a handful of major legislative proposals this morning.

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About the Author: Pierre Cohen

A person who has expertise in politics and writes articles to fill his spare time as a hobby.