Live Budget updates as Chancellor cuts taxes and gives update on energy bills (2022)

Table of Contents
'A bold budget for business' - British Chambers of Commerce 'It’s good to have a plan - what we need now is a strategy' - North East chamber 'Notable' absence of Northern Powerhouse Rail from mini Budget 'The devil will be in the detail' - Northern Ireland Chamber of Commerce Mini-budget will 'embed unfairness' - Welsh government Government borrowing will increase by £72bn - Treasury documents. 'Mini Budget has become more of a ‘maxi’ Budget' - Dorset Chamber Three missed opportunities? Think tank says this is a 'boost up not a trickle down' 'Not much' support for small businesses - South West finance firm 'New zones will positively impact private sector investment' - EY A 'turning point for our economy' - CBI RMT union says “latest threat” will “enrage” members Truss government has got off to 'a flying start' - FSB Corporation tax change will make 'little or no difference to most SMEs' Is this a General Election mini-budget? Hydrogen project welcomes support from Chancellor 'Government now pushing reforms' - Land Promoters and Developers Federation 'The most pro-business budget this century' 'We need an economy that works for all' - GMB PwC responds to Chancellor's retail and hospitality measures MakeUK: Government must work with manufacturers on long term plan Live venues warn there could be more closures Will investment zones be 'hyper-freeports'? 'I've heard this sort of announcement before' Chambers start to react to the mini-Budget - more detail needed 'Disaster' mini budget criticised for lack of fuel duty cut Road and rail projects in line for support Biggest tax cuts in 'half a century' Tax cuts 'won't solve cost of living crisis' - lawyer's reaction FAQs Videos

Chancellor Kwasi Kwarteng is setting out the new Government’s approach to the UK economy, with tens of billions of pounds both of increased spending and of tax cuts in his mini-budget, officially known as a “fiscal event”, at around 9.30am on Friday, reports BusinessLive.

The statement will include 30 measures and details of how the Government will fund the energy price cap for households and businesses, and put into practice many of Prime Minister Liz Truss’s tax-slashing promises.

Mr Kwarteng already confirmed ahead of his mini-budget that the national insurance hike introduced by Boris Johnson’s government to pay for social care and tackling the NHS backlog will be reversed. He is now set to axe the planned increase in corporation tax from 19% to 25%, and scrap the cap on bankers’ bonuses as part of wider City deregulation.

It was also reported that he would cut stamp duty in a further attempt to drive growth. Proposals to fast-track a scheduled 1p cut to income tax and to slash VAT from 20% to 15% across the board were reportedly also being considered.

The Government is in talks with local authorities in the West Midlands, Tees Valley, Somerset and other regions to establish new investment zones – areas with lower taxation and planning rules, the Chancellor is to announce.

In a shake-up of the welfare system, Mr Kwarteng was to announce that 120,000 Universal Credit claimants will have to take active steps to find work or lose benefits. A price cap for the next two years of £2,500 on the average household’s annual energy bill was announced by Ms Truss shortly after she took office, with a six-month freeze on bills for businesses and other non-domestic users unveiled this week.

The Bank of England on Thursday hiked interest rates to 2.25% – their highest in more than 13 years – and indicated it believes the economy is already in recession.

Unlike a full budget, which would typically be held in November, Mr Kwarteng will only put forward a handful of major legislative proposals.

Live updates will appear bel;ow as they are announced

Andrew Arthur

'A bold budget for business' - British Chambers of Commerce

Shevaun Havilland, director general of the British Chambers of Commerce (BCC), descirbed the Chancellor's decsion to reverse the increase to National Insurance Contributions as "a big win" for the business community.

Ms Havilland added plans to make the Annual Investment Allowance permanet would give firms the confidence to "push ahead" with investment, while the newly annonuced 'investment zones' had the potential to encourage new fundng in growth industries.

“Investment Zones could also finally deliver on the Government’s long-standing promise to level up, if the scheme is truly UK-wide. But lessons must be learned from the past, otherwise they can simply displace growth and investment from one area to another without creating new economic activity.

“This is a bold start, and we now await further detail on the further reforms the Treasury announced, to see if this will develop into a comprehensive long-term economic strategy.

“All eyes will also now turn to the forecasts by the Office of Budget Responsibility in the autumn for reassurance on public finances.”

Andrew Arthur

'It’s good to have a plan - what we need now is a strategy' - North East chamber

The North East England Chamber of Commerce has welcomed the "big-ticket items" announced in the Chancellor's mini budget, around Investment Zones, planning and infrastructure,

John McCabe, chief executive added that investment would be required to back up the measures, and the chamber would work with firms in the region to ensure "unintended consequences", such as the displacing of talent or investment, were avoided.

Mr McCabe said: “The Government now has a challenging task ahead of it: to achieve its tax cutting agenda whilst sustaining public investment which we know is at the heart of productive and thriving places.

"The Government’s plan is one part of the solution. But in a week where we’ve seen the North East top the league for the highest rates of child poverty nationally we look forward to working with the Chancellor on skills, inclusion and the wider Levelling Up agenda.

“It’s good to have a plan. What we need now is a strategy – a comprehensive, long-term and clear policy agenda for growth to give businesses and people in the North East confidence in our shared future.”

Live Budget updates as Chancellor cuts taxes and gives update on energy bills (1)

Andrew Arthur

'Notable' absence of Northern Powerhouse Rail from mini Budget

North West business leaders have reacted to Chancellor Kwasi Kwarteng’s mini Budget., which you can read more of here.

Professor Juergen Maier, vice-chair of the Northern Powerhouse Partnership, said while the newly annoucned 'Investment zones' to boost local economies could be "highly effective tools" for attracting businesses to invest - the government risksed undermining their effect by failing to adress "inadequate transport infrastructure, poor education outcomes and low skill levels."

"A real plan for growth would focus on the longstanding barriers to productivity, such as the full delivery of Northern Powerhouse Rail and investment in innovation - but these were notable by their absence.

"We’ll be working with metro mayors to fill that void, making sure that we’re encouraging responsible businesses to invest in the North, creating the high-wage, skilled jobs that are critical to growing the economy and improving living standards.

"A 2.5% growth target is laudable - but it needs to be inclusive and we won’t achieve that without embracing business and communities in the Northern Powerhouse."

Live Budget updates as Chancellor cuts taxes and gives update on energy bills (2)

Andrew Arthur

'The devil will be in the detail' - Northern Ireland Chamber of Commerce

Ann McGregor, chief executive of Northern Ireland Chamber of Commerce and Industry, said businesses in the province would welcome much of the Chancellor's mini -budget, but would want to see more detail.

Ms McGregor said: “Businesses will welcome the Chancellor’s pledge to focus on economic growth. Inevitably, the devil will be in the detail of these proposals, but they must strike the right balance between tackling immediate pressures, driving reform and providing for a sustainable future."

She added the focus on corporation tax was particularly pertinent to Northern Ireland, given its nearest neighbour the Republic has a business tax rate of just 12.5%.

“Moves to target certain business costs, including reversing plans to increase corporation tax and national insurance are welcome interventions at a time of critical need. Reversing the planned increase in corporation tax will be crucial for local firms competing on the island of Ireland in particular."

Live Budget updates as Chancellor cuts taxes and gives update on energy bills (3)

Andrew Arthur

Mini-budget will 'embed unfairness' - Welsh government

Wales’ finance minister has said the Chancellor’s mini-budget will “embed unfairness” across the country.

(Video) Chancellor reverses tax cuts and energy help in Liz Truss’ mini-budget

Rebecca Evans MS said: “Today’s announcements show the UK Government is heading in a deeply worrying direction, with misplaced priorities leading to a regressive statement that will embed unfairness across the United Kingdom.

“Instead of delivering meaningful, targeted support to those who need help the most, the Chancellor is prioritising funding for tax cuts for the rich, unlimited bonuses for bankers and protecting the profits of big energy companies.”

Live Budget updates as Chancellor cuts taxes and gives update on energy bills (4)

Andrew Arthur

Government borrowing will increase by £72bn - Treasury documents.

The PA news agencey is reporting that Government borrowing will increase by £72bn as a result of Chancellor Kwasi Kwarteng’s mini-Budget, according to Treasury documents.

The Debt Management Office’s net financing requirement has been revised upwards from £161.7bn in April to £234.1bn.

It will be funded through additional gilt sales of £62.4 billion and net Treasury bill sales of £10bn.

Andrew Arthur

'Mini Budget has become more of a ‘maxi’ Budget' - Dorset Chamber

Ian Girling, Dorset Chamber chief executive, said he was looking forward to seeing greater detail about the newly announced 'investment zones', of which Dorset is one on a list of almost 40 regions across the UK.

Mr Girling said: “The Chancellor’s mini-Budget has become more of a ‘maxi’ Budget.

“Many businesses in Dorset will welcome the reversal of the increase in National Insurance contributions and scrapping of the proposed rise in corporation tax.

“The income tax shake-up will go some way to offsetting the cost of living crisis for some consumers although it remains to be seen whether this will result in greater spending on goods and services."

He added while many businesses still faced a "hard winter ahead",the Chancellor’s measures gave "much-needed optimism."

Live Budget updates as Chancellor cuts taxes and gives update on energy bills (5)

Alistair Houghton

Three missed opportunities?

Marco Forgione, director general of the Institute of Export & International Trade, said there were three particular missed oppprtunities today.

He said they were:

  • Focused help to drive UK exports, the only way we are really going to get the UK economy growing sustainably
  • Support for the high street with action on business rates
  • Setting up a cross Government MSME Task Force focused on nurturing UK entrepreneurs

He said: “We largely welcome the fiscal plans set out by the Chancellor today, which have particular benefit for our business members in relation to the Energy Bill Relief Scheme. The cuts to energy bills for UK businesses are lifejackets to our members in what is undoubtedly a stormy period.

"The offer of VAT free shopping for overseas visitors will help UK retailers, but businesses also need help with VAT and business rates. We continue to call for the government to establish a task force to support MSMEs with their particular challenges, and to include them in the assessment of vulnerable businesses which will have continued support after the winter."

Alistair Houghton

Think tank says this is a 'boost up not a trickle down'

Several commentators have noted today that the mini-Budget appears to bear the influence of free-market think tank the the Institute of Economic Affairs (IEA). Unsurprisingly, that body has warmly welcomed Kwasi Kwarteng's speech today.

A massive moment for @iealondon. They’ve been advocating these policies for years. They incubated Truss and Kwarteng during their early years as MPs. Britain is now their laboratory.

— Tim Montgomerie (@montie) September 23, 2022

The IEA's director-general Mark Littlewood said: "This isn’t a trickle-down budget, it’s a boost-up budget. The government has announced a radical set of policies to increase Britain’s prosperity – from cancelling the corporation tax rise, to cutting stamp duty and extending investment allowances.

“It’s refreshing to hear a Chancellor talk passionately about the importance of economic growth and supply-side reforms, rather than rattling off a string of state spending pledges and higher taxes. Only by bearing down on the amount of tax the state collects across the income spectrum, and reducing the regulatory burden, can we create better conditions for growth.

“The additional rate of income tax (45p) was always performative politics rather than sound economics. A simplified income tax system, with just two rates of tax, will mean higher earners spend less time tax planning and more time boosting their own productivity. The 1p off the basic rate of income tax will put more money in people’s pockets. The government should also consider raising income tax thresholds to help boost pay packets further.

“There were also important announcements on liberalising planning, scrapping the ludicrous cap on bankers’ bonuses, and encouraging those who can work to do so.

“This is a very encouraging start, but the government must not take its foot off the pedal. It will be important to keep reforming the tax system and spell out details on cutting burdensome red tape, including sunsetting EU regulation.

“Growth in state spending has been more than five times growth in GDP since 2015. Bringing down taxes from an absurd high is welcome, but the government needs to outline plans to get down public spending and borrowing in the medium-term.

“If this was the Chancellor’s ‘mini’ budget, l look forward to the ‘maxi’ budget.”

Andrew Arthur

'Not much' support for small businesses - South West finance firm

Bath-based financial sercvices firm Ed Rimmer has welcomed the "dedicated and targeted approach" of the newly announced 'invesmtnet zones' to boost local economies acorss the UK, the full list can be found here on BusinessLive.

However chief executive Ed Rimmer adds there was "not much" in today’s mini-Budget that will support small businesses.

He said: "The 100% tax relief on plant and machinery will certainly help but there was bigger news in the major tax cuts, which will disproportionately benefit those that are less in need and though the Chancellor argued the merits of scrapping the cap of bankers bonuses, it does point to a distortion of priorities.

"Where are the measures to support small businesses in making investments for their growth in terms of skills or research and development?

Live Budget updates as Chancellor cuts taxes and gives update on energy bills (6)

(Video) Pound plummets as UK government announces biggest tax cuts in 50 years

Tamlyn Jones

'New zones will positively impact private sector investment' - EY

Chris Romans, EY's head of tax in the Midlands, said plans for new investment zones would positively impact private sector investment.

"While 40 low-tax investment zones have been promised across the UK, we are pleased to hear that discussions about a West Midlands site are already advancing. These new sites will provide a freeze on rates for businesses moving in and no National Insurance on the first £50,000 that new employees earn.

"The zones will not only boost local investment but also national and international investment within our towns and cities. We look forward to the advancement of discussions and to finding out where these new zones will be located."

KEY EVENT

A 'turning point for our economy' - CBI

The Confederation of British Industry (CBI) has largely welcomed the plans announced by Chancellor Kwasi Kwarteng, labelling them a “turning point for our economy”.

Tony Danker, CBI director-general, said: “Like Covid, the energy crisis has meant Government has had to spend massively to protect people and businesses. That means we have no choice but to go for growth to afford it."

“Today is day one of a new UK growth approach. We must now use this opportunity to make it count and bring growth to every corner of the UK.

“Fifteen years of anaemic growth cannot be repeated.

“Taking action to get Britain’s economy moving again by beginning construction on transport and green infrastructure projects shows immediate delivery. Planning reform is long overdue.

“A simpler, smarter approach to tax can pay dividends and firms will be keen to make the most of the investment incentives on offer.

“It’s not perfect – it’s just the beginning – but there’s plenty business can work with. The Chancellor signalled more proposals to come this autumn and these will be vital to sustain momentum on growth.”

Live Budget updates as Chancellor cuts taxes and gives update on energy bills (7)

KEY EVENT

RMT union says “latest threat” will “enrage” members

During his his mini Budget the Chancellor annoucned plans to require trade unions to put pay offers to a member vote so strikes can only be called once negotiations have fully broken down,

In response, Mick Lynch, general secretary of the RMT rail workers union, said: "We already have the most severe anti-democratic trade union laws in Western Europe and this latest threat will rightly enrage our members.

"The government should be working towards a negotiated settlement in the national rail dispute, not seeking to make it even harder to take effective strike action.

"RMT and other unions will not sit idly by or meekly accept any further obstacles on their members exercising the basic human right to withdraw their labour."

Tamlyn Jones

Truss government has got off to 'a flying start' - FSB

Trade body the Federation of Small Business has plenty to say on the Mini Budget, much of it positive, stating the Truss government has got off to "a flying start".

National chairman Martin McTague said the Chancellor had delivered measures which were "pro small business" and had rightly recognised that removing taxes on jobs, investment and entrepreneurs was essential for our economy:

"Ministers need to be relentless in removing barriers to small business success - especially with the current headwinds. The Government has today signalled its determination to back small firms and we look forward to working with ministers and departments to put in place measures to help small businesses grow and succeed. It's good that the planned corporation tax increase has been scrapped. The £50,000 threshold for the main rate would have captured many small firms so keeping tax on profits over £50,000 at 19 per cent is welcome.

"This will free up funds for small businesses to invest and mitigate the impact of continuing high inflation levels. The proposals for investment zones, where business taxes will be reduced and planning rules eased, show welcome resolve to levelling up by being pro-business. Levelling up can only succeed if small businesses in communities across our country are backed to grow, invest and create new jobs."

Alistair Houghton

Corporation tax change will make 'little or no difference to most SMEs'

Bibby Financial Services provideds finance to some 7,000 small businesses.

Its UK managing director Derek Ryan said: "Freezing corporation tax at 19% will doubtless be welcomed by many.

"But the former Chancellor’s proposal to increase corporation tax to 25% would only have applied to those making profits of £50,000 or more, which is approximately 70% of businesses. For a significant number of the UK’s 5.6 million small to medium sized businesses, profits fall well short of this threshold.

"Consequently, today’s announcement makes little or no difference to their prospects for growth or survival. Indeed, our own data shows 76% of SMEs are concerned that the current economic climate is killing entrepreneurialism and 26% can’t afford to invest in their businesses."

“Small to medium sized businesses clearly need more direct, long-term support if they are to make a meaningful contribution to Mr Kwarteng’s ambitions.”

Alistair Houghton

Is this a General Election mini-budget?

Dr Gordon Fletcher, retail and economy expert from the University of Salford Business School, was not impressed with today's mini-budget.

He said: “This feels like a series of uncosted party pledges being made going into a general election rather than a costed, balanced management of national finances being made by a responsible government!

“The announcements primarily benefit those probably least concerned about cost of living increases within their households and those business most benefitting from the current situation. It is a solution pinned to a vague objective of achieving growth without addressing the real systemic issues that confront UK business including productivity issues and upskilling the working population.

“The fiscal event has not received scrutiny from the Office of Budget Responsibility and no statement about the long-term consequences of these decisions accompanied Kwarteng's performance. The event appealed directly to - and rewarded - the constituency that elected Truss to Prime Minister. There will be little to celebrate for those most worried about heating their home over Christmas.”

Alistair Houghton

(Video) Chancellor Jeremy Hunt reverses 'almost all' mini-Budget tax cuts

Hydrogen project welcomes support from Chancellor

A project to transform the North West into one of the world's first low-carbon industrial clusters has welcomed today's statement.

HyNet’s project director, David Parkin, said: "We are delighted that the Chancellor, Kwasi Kwarteng, has named HyNet within the Growth Plan to be accelerated for "as fast as possible" delivery.

“This includes the HyNet’s hydrogen pipeline, hydrogen storage and carbon capture and storage infrastructure.

“HyNet is at the centre of the UK’s low carbon hydrogen economy and will create over 6,000 jobs across the region, safeguarding highly skilled manufacturing jobs and bring investment work £31 billion into the UK economy, helping to level up across the country.

“The transition to a low carbon economy, through projects such as HyNet, provides the UK with a fantastic opportunity to protect and create highly skilled jobs, create a sustainable supply chain, and provide UK businesses with the ability to deliver the environmentally friendly products that consumers are increasingly demanding.

“Similarly, authorities spanning the HyNet region, including Liverpool City Region Combined Authority, Cheshire West and Chester Council and Greater Manchester Combined Authority, in addition to Ellsmere Port, have been named as ‘investment zones’ in which development, investment and job creation is turbocharged.”

Tamlyn Jones

'Government now pushing reforms' - Land Promoters and Developers Federation

Paul Brocklehurst, chairman of the Land Promoters and Developers Federation, says the Chancellor's statement showed the Government was now pushing reforms on both economic growth and supply side:

"We look forward to discussing with Government our thoughts on the shape of such reforms to ensure that housing of all types is built to address the housing emergency and to ensure that the industry can play a full role in achieving the Government's ambitions of making the UK economy one of high growth.

"While we welcome the stamp duty cuts that will largely benefit first-time buyers, we have believed for many years that addressing the issue of housing affordability, increasing home ownership and delivering affordable housing was only ever going to be dealt with through meaningful supply-side reform.

"We also welcome the Government's initiative to stimulate growth within up to 38 new investment zones where restrictions will be lifted and incentives granted but we await the important details about how and when this will be implemented."

Andrew Arthur

'The most pro-business budget this century'

Nicholas Hyett, investment analyst at Bristol-based investment firm Wealth Club, descibed the Chancellor's measures as the "most pro-business budget this century", aqdding that Mr Kwarteng had acted to support Britain’s “unbounded entrepreneurial drive”.

Mr Hyett said: "There is still plenty of work to do, with the government planning radical supply side reform as well as dramatic changes to the tax system. Those are no easy tasks, but the government clearly recognises the importance of a thriving private sector and the crucial role entrepreneurs play in building a successful economic future.”

Tamlyn Jones

'We need an economy that works for all' - GMB

Trade union GMB has hit out at the Mini Budget, saying its members want an economy that works for all, not just those who are already rich. General secretary Gary Smith said:

"These same Tories have been in power for 12 years, presiding over a low-growth, low-productivity, low-pay economy. The country is crying out for a credible economic vision for the future. We need to bring inflation under control and build a modern manufacturing base that creates good jobs at home and enhances our national security.

"Instead the Chancellor has chosen to pour money into the hands of rich multinationals. The Chancellor is tough on care workers' pay rises and soft on bankers' bonuses - today's announcement has set in stone an economy that's rigged against working people. Our members want an economic policy that works for all, not just the spivs and speculators who have done very well out of a Tory Government. The Chancellor had a chance to set a new approach but instead he failed his first and most important test."

Andrew Arthur

PwC responds to Chancellor's retail and hospitality measures

Lisa Hooker, leader of consumer markets Lead at PwC, said firms in retail and hospitality were facing a "perfect storm" of inflated costs and reduction in consumer spending.

Responsing to the mini-budget, she added: "The tax reductions and investment for growth should help the consumer longer term and short term energy cost support is important but the sector is still waiting to hear about any other cost measures such as business rates. They will be holding their breath until the main budget given the risk around increasing rates from inflation.

“The reintroduction of VAT free shopping for overseas visitors will be a much welcome measure for retailers particularly given the reduction in overseas visitors to our tourist shopping areas, providing a much needed boost for our important high streets.”

Andrew Arthur

MakeUK: Government must work with manufacturers on long term plan

Stephen Phipson CEO of Make UK, the manufacturers’ organisation, has said industry will welcome a "number of positive measures" announced by the Chancellor this morning, on the back of the announced suport with energy bills, including some to help shiled firms from "escalating costs" and to "help protect jobs".

Mr Phipson said however the growth plan was the sixth from Government in "a little over a decade" and the new administartion must try and boost business confidence by working with indusry on a long term ecomonic stargery and a national manufacturing plan.

Alistair Houghton

Live venues warn there could be more closures

The chief executive of Live – the voice of the UK’s live music business – said the mini-budget offers “little” for the UK’s live music industry and warned businesses that are struggling already could “face bankruptcy and closure”.

Jon Collins said: “While we are pleased to see the Government taking steps to alleviate the cost-of-living crisis, today’s announcement delivers little for the UK’s world leading live music industry.

“Jobs are already on a knife edge, and we agree with the Chancellor that there are too many barriers in sectors like ours where the UK leads the world.

“Combined with the impact of reduced public spending power and rising costs across the supply chain, businesses that are already struggling to turn a profit will face bankruptcy and closure.

“Only the emergency measures that we have suggested to Government will prevent this – injecting cash into the bottom line of struggling businesses through a reduction in VAT on ticket sales, as well as major reform of business rates.”

His message echoes that of Manchester's nightlife chief Sacha Lord, who earlier warned of "mass redundancies" in the sector.

Speechless.

No VAT or Biz Rate support for Hospitality.

(Video) Watch live: Sophy Ridge on Sunday

Corporation tax cuts are completely useless if businesses aren’t turning a profit, or worse, closed.

These announcements will now mean last orders for thousands of Hospitality businesses meaning mass redundancies.

— Sacha Lord (@Sacha_Lord) September 23, 2022

Alistair Houghton

Will investment zones be 'hyper-freeports'?

Stuart Tym, planning partner at UK-wide law firm Shoosmiths, said: “The proposed local investment zones can be seen as hyper-freeports, eclipsing those announced by the previous administration in terms of deregulation. This is particularly the case for planning policy, with the zones subject to bespoke regulations and potentially scaling back environmental protections, Section 106 agreements and infrastructure levies.

“Changing planning policy can act as a lever for development. However, it’s critical that we avoid becoming tunnel-visioned in the pursuit of economic growth; ensuring that deregulation does not impact the environment and balances the delivery of much-needed market rate and affordable housing with the related required infrastructure.

“Government funding will be used to fill the void left by reducing developer contributions in these zones. The success of this system hinges on often under-resourced local planning authorities being not only able to demonstrate what they would have asked a developer to finance, but also obtain funding from a new government stream and deliver projects in a timely fashion to mitigate the impact of development.

“The confirmation that a bill is set to be brought forward to ‘unpick’ the wider planning system may signal the end of the Levelling Up and Regeneration Bill and its planning proposals. The Chesham and Amersham by-election result may have made that approach to de-regulation unpalatable; which remains the political lens through which further reform must be viewed.

“If the government is to accelerate wider planning reform by ‘unleashing the power of the private sector’, it must also empower the public sector by properly resourcing local planning authorities.”

Tamlyn Jones

'I've heard this sort of announcement before'

Russell Luckock is chairman of Birmingham pressings firm AE Harris and a regular columnist in our sister newspaper the Birmingham Post.

"Perhaps I am getting too old but, as Kwasi Kwarteng stood at the Dispatch Box this morning, I could not help thinking I had heard this sort of announcement before as newly appointed Chancellors wielded a new broom. Many of the measures will be welcomed but, if the Government really wants to get house building moving, it must repeal masses of restrictive legislation that has been put in place as a result of 'green' commitments. This and the slowness of planning committees in responding to applications is restricting activity in the sector. Income tax reductions are most welcome but the electorate has to be aware that sometime in the future, a bill will have to be paid."

Alistair Houghton

Chambers start to react to the mini-Budget - more detail needed

Chambers of Commerce across the UK are now digesting the mini-Budget and what it might mean for them.

Paul Cherpeau, chief executive of Liverpool Chamber, is one of the first to respond - and like many people today, he says much more detail is needed.

He said: "Businesses will be pleased to see the government bring forward measures to tackle the short-term causes of inflation with a long-term approach to boost investment and raise confidence.

"The Chancellor’s package of planning reforms and tax cuts is clearly aimed at encouraging investment and growth, but the devil will be in the detail and many questions remain about how quickly the measures will have an impact.

Live Budget updates as Chancellor cuts taxes and gives update on energy bills (8)

"Businesses will certainly welcome the cancellation of planned increases in Corporation Tax and National Insurance contributions, coupled with specific reforms around plant and machinery allowances and IR35, offering breathing space to plan for the future and reinvest in technology, premises and people.

"Tourism and hospitality play a major part in our regional economy, so specific measures such as VAT free provisions at airports and ports, as well as the repeal of duty increases on alcohol have the potential to benefit some of our largest employers.

"Investment Zones offer perhaps the largest signal of the government’s new direction, with the opportunity for businesses to pay lower taxes and business rates in specific areas. Details on the exact locations and the rationale for choosing them have yet to be released but we hope the Liverpool City Region will benefit from any further opportunities to support growth and investment."

Andrew Arthur

'Disaster' mini budget criticised for lack of fuel duty cut

Campaign group FairFuelUK has described the mini-budget as a "disaster" for the economy and driver, criticising the Chancellor and the Prime Minister for not cutting fuel duty.

Howard Cox of FairFuelUK said: "Low income familes, small businesses and the economy will continue to be crippled by high pump prices, punitive fuel duty levels and opportunistic profiteering in the fuel supply chain. Neither have been addressed by this continuing atypical Tory administration.

"I am disgusted that yet again drivers are being used as the Government’s cash cows. No promise of keeping Rishi Sunak’s 5p cut in duty and not matching the significant fuel duty cuts across Europe."

Alistair Houghton

Road and rail projects in line for support

Jennifer Williams from the FT reports on on the list of road and rail projects that could be in line fopr support after Kwasi Kwarteng's speech - a long list indeed. Communities across the UK will be eagerly awaiting more details.

Road and rail projects prioritised for acceleration (includes NPR, although what that is in reality, not sure): pic.twitter.com/lg6H8u8261

— Jennifer Williams (@JenWilliamsMEN) September 23, 2022

Andrew Arthur

Biggest tax cuts in 'half a century'

Paul Johnson, director of the Insititute for Fiscal Studies, has tweeted in response, calling the Chancellor's annoucments as he "biggest tax cutting budget in half a century"

Mr Johnson added: "£45 billion of tax cuts. This is biggest tax cutting event since 1972. Barber's "dash for growth" then ended in disaster. That Budget is now known as the worst of modern times. Genuinely, I hope this one works very much better."

Alistair Houghton

Tax cuts 'won't solve cost of living crisis' - lawyer's reaction

Lisa Botterill, corporate partner at Leicester law firm Shakespeare Martineau, said: "While always welcome as it helps encourage growth, which we will need to keep us out of a recession, the announcement that next year’s planned corporation tax rise will no longer happen isn’t going to solve the cost of living problem we are currently facing.

“The real issue here is the huge increase in energy bills. While consumers have been given some protection by the recent price fix Prime Minister Liz Truss announced, the recently-announced six-month support for businesses isn’t going to help with any long-term business planning and still leaves a huge amount of uncertainty for businesses of all sizes.

(Video) Hunt warns of tax rises and spending cuts ahead of autumn statement

“Companies in all sectors – but especially those involved in manufacturing that consume large amounts of energy in producing goods – have seen astronomical increases in their energy bills, which are then inevitably being passed on in the cost to the end user, fuelling inflation. The recently-announced measures fall way short of giving businesses the certainty they need to continue to invest and grow.

“Any measures introduced need to get right back to the crux of the problem to provide more long-term certainty and stability to really get control of inflation.”

FAQs

What has the Chancellor announced? ›

In his statement the Chancellor announced a reversal of almost all of the tax measures set out in the Growth Plan that have not been legislated for in parliament. The following tax policies will no longer be taken forward: Cutting the basic rate of income tax to 19% from April 2023.

What were the tax cuts in the mini-budget? ›

The Government had already cancelled measures contained in the mini-budget to abolish the 45% additional rate of income tax and freeze the main rate of corporation tax at 19%.

What's happened in the mini-budget? ›

The government will reverse almost all tax measures announced in its mini-budget. Plans to cut the basic rate of income tax to 19% have been shelved and support for energy bills scaled back.

Can the mini-budget be reversed? ›

When the levy was introduced, there was a corresponding 1.25% increase in the rates at which dividend income is taxed. It was expected that the corresponding increases in dividend tax rates would be reversed with effect from April 2023, but on 17 October HM Treasury confirmed that this reversal would not go ahead.

Will benefits increase in 2023? ›

Working age benefits are generally uprated every April in line with the previous September's CPI inflation figure, so if no changes are made to uprating before next spring, working-age benefits will increase by 10.1% in April 2023.

Will income tax be cut? ›

The basic rate income tax will be cut from 20% to 19% from April 2023, after being brought forward from April 2024. The additional rate of tax will also be axed, so anyone earning over the higher rate threshold will pay 40%.

What will be in the mini-budget 2022? ›

As had been widely anticipated, it was confirmed in September's mini budget that the April 2022 1.25% rise in National Insurance would be reversed from 6 November 2022. The increase was a temporary measure for the current tax year before the Health & Social Care Levy was formally introduced on 6 April 2023.

What are the new tax changes? ›

Each year, taxpayers can either itemize their tax return or take the standard deduction to lower their taxable income. For the 2023 tax year, the standard deduction will increase by $900 for single filers and those married filing separately, $1,800 for married couples, and $1,400 for heads of household.

What's in the budget for pensioners 2022? ›

What was announced in Budget 2022-23? Budget 2022-23 extends the benefits of the original measure to the age pensioner's partner, as long as that partner is also receiving a pension (including Age Pension, Disability Support Pension, Carer Payment or equivalent Department of Veterans' Affairs payments).

What date is the budget 2022 UK? ›

Budget Autumn 2022 - POSTPONED new date - Monday 28th November 2022
Date and timeLocation
28/11/2022 10:00 - 12:20Virtual

What will the Chancellor do in the budget? ›

Each year the Chancellor of the Exchequer makes the Budget statement to the House of Commons outlining the state of the economy and the Government's proposals for changes to taxation. The House of Commons debates the Budget and scrutinises the subsequent Finance Bill, which enacts the Chancellor's proposals.

Which Chancellor resigned because of a budget leak? ›

His political position was already in jeopardy in 1947 when he, seemingly inadvertently, revealed a sentence of the budget to a reporter minutes before delivering his budget speech. Prime Minister Clement Attlee accepted his resignation; Dalton later returned to the cabinet in relatively minor positions.

What happens if a budget is too restrictive? ›

But if you're too restrictive with your budget all the time, you'll likely find your energy quickly drained, which, in an unfortunate twist, can push you to spend more.

What happens if budgets are not controlled? ›

So, what are the consequences of not budgeting? In short, the most common consequences of not budgeting include a lack of savings, less financial security, out of control spending, a higher likelihood of going into debt, and more financial stress.

What is the quickest way to reduce your budget? ›

Other Ways to Cut Spending
  1. Take shopping apps off your phone. Okay, don't freak out. ...
  2. Go on a short-term spending freeze. If you want to really challenge yourself, go on a spending freeze. ...
  3. Ditch your credit cards. The best way to get ahead? ...
  4. Buy used. Use common sense on this. ...
  5. Wait before you buy. ...
  6. Create a budget.

How do I get the $16728 Social Security bonus? ›

How to get the $16,728 bonus in retirement?
  1. Work as long as you can: the later you retire the higher your benefit will be. Remember that 70 is the maximum age. ...
  2. Years worked: If you work less than 35 years you will have a reduction in your SSA check. ...
  3. High salary: with a high salary you will have a high retirement.
14 Sept 2022

Why did I get two Social Security checks this month 2022? ›

The most common reason someone might be receiving two Social Security payments in a single month is that they are receiving both Social Security Disability Insurance (SSD or SSDI) benefits and Supplement Security Income (SSI) benefits.

What changes are coming to Social Security in 2023? ›

1. Cost of living adjustment (COLA) rises. The SSA has announced that benefit checks will rise 8.7 percent in 2023, a substantial increase even from the 5.9 percent adjustment for 2022, which was already unusually high. In fact, the 2023 COLA is the highest increase since 1981, when it was 11.2 percent.

What would happen if the government cut taxes? ›

The Bottom Line

Tax cuts reduce government revenues and create either a budget deficit or increased sovereign debt. Critics often argue that the tax cut benefits the rich at the expense of those with fewer resources as services beneficial to those in a lower income bracket are cut.

Why are we still paying taxes? ›

We pay taxes to fund our federal, state and local governments so they can function properly and provide necessary services. Each particular government has its particular focus, with the big-picture spending on things like defense and Social Security placed in the hands of the federal government.

Are tax rates changing in 2022? ›

When it comes to federal income tax rates and brackets, the tax rates themselves aren't changing from 2022 to 2023. The same seven tax rates in effect for the 2022 tax year – 10%, 12%, 22%, 24%, 32%, 35% and 37% – still apply for 2023.

Is there a government budget for 2022? ›

Summary. The federal budget deficit was $1.4 trillion in fiscal year 2022, the Congressional Budget Office estimates—about half of last year's deficit of $2.8 trillion. Revenues were $850 billion (or 21 percent) higher and outlays were $548 billion (or 8 percent) lower than they were in fiscal year 2021.

Will there be a stamp duty holiday in 2022? ›

From 1 July to 30 September, it was payable on the cost of properties above £250,000. Then, from 1 October 2021, the holiday ended and stamp duty reverted to pre-holiday rates, starting at £125,000. The thresholds have now been raised again, starting on 23 September 2022.

Whats new in taxes for 2022? ›

Standard deduction increase: The standard deduction for 2022 (which will be useful when you file in 2023) increased to $12,950 for single filers and $25,900 for married couples filing jointly. Tax brackets increase: The income tax brackets will also increase in 2022.

What is the standard tax deduction for seniors over 65? ›

If you're at least 65 years old or blind, an additional standard deduction of $1,500 is allowed for 2023 ($1,850 if you're claiming the single or head of household filing status). As with the 2022 standard deduction, the additional deduction amount is doubled if you're both 65 or older and blind.

What are the tax changes for 2023? ›

Changes to 2023 standard deductions

For the 2023 tax year, the standard deduction increases to: $13,850 for single filers (an increase of $900) $20,800 for head of household filers (an increase of $1,400) $27,700 for married couples filing jointly (an increase of $1,800)

Are pensioners getting a one-off payment in 2022? ›

A one-off $250 Cost of Living Payment will be paid to eligible recipients from the end of April 2022. The Cost of Living Payment is a one-off payment of $250 for eligible payment recipients and concession card holders.

Are pensioners getting extra money in 2022? ›

A cost of living support package has been put in place for 2022 that includes one-off payments to those on income related benefits, disabled claimants and pensioners. These payments are intended to provide support to you with the current rise in the cost of living.

Do pensioners get a bonus payment in 2022? ›

An estimated 40,000 pensioners in the Banks electorate should benefit from a one-off $250 payment under the 2022 Federal Budget, Member for Banks, David Coleman said.

Will there still be an autumn budget 2022? ›

Chancellor of the Exchequer in UK Jeremy Hunt will deliver the Autumn Statement on November 17, just about two months after the Liz Truss administration's mini-budget reportedly crashed the British economy. Hunt is expected to announce new tax rises and spending cuts worth about £54 billion.

Will there be an Autumn Statement 2022? ›

The Chancellor of the Exchequer will present his Autumn Statement to Parliament on Thursday 17 November 2022.

Will there be a Christmas bonus in Budget 2022? ›

The Christmas Bonus is an extra payment for people getting a long-term social welfare payment. In 2022, the Christmas Bonus will be 100% of your normal weekly long-term social welfare payment (the minimum payment is €20). The bonus will be paid with your social welfare payment the week starting 5 December 2022.

Is the Chancellor going to cut stamp duty? ›

Today the new chancellor has announced that the “permanent” cut to stamp duty tax will go ahead despite ditching nearly all of the other tax measures announced in the Mini Budget last month.

What are the new tax cuts UK? ›

Income tax basic rate cut

The rate of income tax payable on incomes between £12,571 and £50,270 a year - known as the basic rate - will be cut from 20% to 19% from April 2023. That should benefit 31 million income taxpayers in England, Wales and Northern Ireland.

Who has more power the Chancellor or the president? ›

The president enjoys a higher ranking at official functions than the chancellor. The president's role is integrative and includes the control function of upholding the law and the constitution.

What happens when the Sanggunian fails to pass the budget? ›

What happens if the Sangguniang Barangay fails to enact an appropriation ordinance? The ordinance authorizing the appropriations of the preceding year shall be deemed reenacted and shall remain in force and effect until the ordinance authorizing the proposed appropriations is passed by the Sangguniang Barangay.

Which Minister is responsible for the budget? ›

Finance Minister underlines need for a Budget to protect public finances.

Who is responsible for budget in parliament? ›

In India, the Budget is presented to Parliament on such date as is fixed by the President. The Budget speech of the Finance Minister is usually in two parts. Part A deals with general economic survey of the country while Part B relates to taxation proposals.

How much is the winter fuel payment to pensioners? ›

This is known as a 'Winter Fuel Payment'. The amount you'll get includes a 'Pensioner Cost of Living Payment'. This is between £150 and £300. You'll only get this extra amount in winter 2022 to 2023.

Who will get the one off 650 payment? ›

For joint benefits claimants, the Government advises: “If you have a joint claim with a partner, you will get one payment of £650 for both of you, paid in two lump sums from July 2022 and in autumn 2022, if eligible.”

What does the Lord Chancellor do now? ›

By law, the lord chancellor is responsible for the administration of the courts, prison system, legal aid, and probation services in England and Wales. Furthermore, the lord chancellor has a role in appointing many judges in the courts of England and Wales. Senior judges – i.e.

What did the Chancellor do? ›

Responsibilities. The Chancellor of the Exchequer is the government's chief financial minister and as such is responsible for raising revenue through taxation or borrowing and for controlling public spending. He has overall responsibility for the work of the Treasury.

Do pensioners get cost of living payment 2022? ›

A cost of living support package has been put in place for 2022 that includes one-off payments to those on income related benefits, disabled claimants and pensioners.

Who will get the winter fuel allowance 2022? ›

Am I eligible for Winter Fuel Payment? If you were born on or before 25 September 1956, you're likely to qualify for a Winter Fuel Payment in the winter of 2022-23, as long as you were living in the UK during the qualifying week. The qualifying week is the week beginning from the third Monday in September.

Will I get Winter Fuel Payment when I am 65? ›

If you have reached Pension Credit age (the minimum age at which you qualify for the benefit), or receive certain benefits, you will get extra money to help you in winter.

Who gets the 324 payment? ›

You will be eligible for the second Cost of Living Payment of £324 if you were entitled to a payment (or later found to be entitled to a payment) of Universal Credit for an assessment period that ended in the period 26 August 2022 to 25 September 2022. The payment will be made separately from your benefit.

What happens if you don't get a cost of living payment? ›

If you haven't had your cost of living payment, and you think you should have, you can report a missing payment on GOV.UK. If you're not claiming any of these benefits yet, you should check if you can claim benefits.

Who gets the 324 cost of living payment? ›

Over 8 million households in England, Wales, Scotland and Northern Ireland who claimed qualifying means-tested benefits during the eligibility period will be automatically paid £324 this month, as part of £1,200 worth of direct help for households.

How much power does the Chancellor have? ›

The chancellor has considerable control over other departments as it is the Treasury that sets Departmental Expenditure Limits. The amount of power this gives to an individual chancellor depends on their personal forcefulness, their status within their party and their relationship with the prime minister.

Does the Chancellor have power? ›

Even though the office of chancellor is practically the most powerful in the German political system and is seen as such within the German public, it is actually only the third highest office, following the head of state, the President of Germany, and the President of the Bundestag, a position similar to the speaker of ...

What is the difference between Chancellor and Prime Minister? ›

As one of the four Great Offices of State, the chancellor is a high-ranking member of the British Cabinet and is third in the ministerial ranking, behind the prime minister and the deputy prime minister.

Are taxes going up in 2022 UK? ›

The temporary 1.25 percentage point increase in National Insurance rates has been reversed for the rest of the financial year. The introduction of a separate Health and Social Care Levy tax in April 2023 has been cancelled.

Does the chancellor have more power than the president? ›

The president enjoys a higher ranking at official functions than the chancellor. The president's role is integrative and includes the control function of upholding the law and the constitution.

What is above a chancellor? ›

In the United States, the head of a university is most commonly a university president. In U.S., university systems that have more than one affiliated university or campus, the executive head of a specific campus may have the title of chancellor and report to the overall system's president, or vice versa.

Videos

1. Chancellor reverses 'almost all' tax cuts of mini-budget
(Sky News)
2. Mini-Budget in full: Kwasi Kwarteng announces tax cuts worth £45bn
(The Telegraph)
3. UK Prime Minister Liz Truss grilled over tax cuts in local radio interviews - BBC News
(BBC News)
4. Watch live as Chancellor Kwasi Kwarteng delivers 'mini-budget'
(ITV News)
5. Jeremy Hunt's statement on medium-term fiscal plan – watch in full
(Guardian News)
6. Recession Fears | Bloomberg Surveillance 09/23/2022
(Bloomberg Markets and Finance)

Top Articles

Latest Posts

Article information

Author: Virgilio Hermann JD

Last Updated: 11/26/2022

Views: 6393

Rating: 4 / 5 (61 voted)

Reviews: 84% of readers found this page helpful

Author information

Name: Virgilio Hermann JD

Birthday: 1997-12-21

Address: 6946 Schoen Cove, Sipesshire, MO 55944

Phone: +3763365785260

Job: Accounting Engineer

Hobby: Web surfing, Rafting, Dowsing, Stand-up comedy, Ghost hunting, Swimming, Amateur radio

Introduction: My name is Virgilio Hermann JD, I am a fine, gifted, beautiful, encouraging, kind, talented, zealous person who loves writing and wants to share my knowledge and understanding with you.