Live Budget updates as Chancellor cuts taxes and gives update on energy bills (2023)

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 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.

Are taxes going up in 2022? ›

From the 2022-23 tax year, basic rate dividend tax will be charged at 8.75% instead of 7.5% this year. Higher rate dividend taxpayers will be charged 33.75% instead of 32.5% and additional rate dividend taxpayers will pay 39.35% instead of 38.1% respectively.

What was said in the mini-budget? ›

On 23 September 2022, the then Chancellor, Kwasi Kwarteng, presented his “mini budget” to Parliament and launched the Government's Growth Plan 2022. In his statement, the then Chancellor said the Government aims to have a trend rate of economic growth of 2.5% over the medium term.

What was the Chancellor? ›

The chancellor of the Exchequer, often abbreviated to chancellor, is a senior minister of the Crown within the Government of the United Kingdom, and head of His Majesty's Treasury.

Who is responsible for the budgets? ›

The person who is ultimately responsible for ensuring that the budget is followed is known as the Budget Holder.

Which Minister is responsible for budgeting? ›

Ashni Singh, M.P., Senior Minister in the Office of the President with responsibility for Finance. Mr. Speaker, I rise to move the motion for the approval of the Estimates of the Public Sector and the Budget for the Financial Year 2021.

Why do I have to pay so much in taxes in 2022? ›

The IRS has announced higher federal income tax brackets for 2022 amid rising inflation. And the standard deduction is increasing to $25,900 for married couples filing together and $12,950 for single taxpayers.

Do you pay tax on state pension? ›

Any State Pension you get is liable to income tax, but it's paid to you before any tax is deducted.

Why am I getting less taxes back this year 2022? ›

One of the more common reasons why your tax refund may be less is because you earned more money last year than you remember, as compared to 2020 most people worked more hours, while some could have either got a pay rise or changed jobs, which could have seen an improvement in your salary.

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 is the higher tax bracket 2022 UK? ›

For 2022/23 these three rates are 20%, 40% and 45% respectively. Tax is charged on taxable income at the basic rate up to the basic rate limit, set at £37,700.

How will the mini-budget affect me? ›

This means the basic tax rate will be maintained at the current 20% rate. Dividend tax rates will no longer fall to the pre-social levy rates from April 2023. This means they will be maintained at the current rates of 8.75%, 33.75%, and 39.35% for the 2023/24 tax year.

What is another name for chancellor? ›

What is another word for chancellor?
leaderpresident
principaldean
provostmaster
rectorgovernor
wardenchief
92 more rows

What are the duties of a chancellor? ›

Chancellor Responsibilities:
  • Planning budgets.
  • Creating policies and frameworks.
  • Overseeing the hiring of senior staff.
  • Managing the planning of academic and research programs.
  • Creating a supportive learning environment.
  • Representing the institution in educational seminars and conferences.
  • Seeking financial support.

What is the duty of chancellor? ›

The Chancellor is responsible for the leadership of the Governing Authority. As Chair of its meetings, he/she is responsible for ensuring that the necessary business of the Governing Authority is carried out efficiently, effectively, and in a manner appropriate for the proper conduct of public business.

How do you manage a successful budget? ›

Creating a budget
  1. Step 1: Calculate your net income. The foundation of an effective budget is your net income. ...
  2. Step 2: Track your spending. ...
  3. Step 3: Set realistic goals. ...
  4. Step 4: Make a plan. ...
  5. Step 5: Adjust your spending to stay on budget. ...
  6. Step 6: Review your budget regularly.

How do you control a budget? ›

The budgeting control process
  1. Set budget goals. Individuals can take responsibility for budget targets, but there may be some company-wide budgeting goals that are also required. ...
  2. Trigger rewards. ...
  3. Flag variances. ...
  4. Take action. ...
  5. Data-based decisions. ...
  6. Improved allocation accuracy. ...
  7. Better communication. ...
  8. More optimum spending.
2 Feb 2022

What are the benefits of the budgeting process? ›

Benefits of Budgeting Process
  • Provides standards against which actual performance can be measured.
  • Causes managers to focus their attention from current to future operations.
  • Allows managers to reassess goals and objectives and the means for accomplishing them.

Which Minister is responsible for energy? ›

The Rt Hon Grant Shapps was appointed Secretary of State for Business, Energy and Industrial Strategy on 25 October 2022.

What is the function of the government budget? ›

Traditionally the budget is presented to allow scrutiny (by taxpayers, voters, and the legislature) of the resources raised by government and the uses to which these will be put. The publication of a budget thus performs the role of generating accountability for the actions of government at various levels.

Are we getting a stimulus check in 2022? ›

This rebate was split into two equal payments, delivered in June and August 2022. The funds were sent automatically to taxpayers who filed a 2021 state return. If you file your 2021 state income tax return by May 31, 2023, you'll receive your rebate by direct deposit or check.

At what age is Social Security no longer taxed? ›

Are Social Security benefits taxable regardless of age? Yes. The rules for taxing benefits do not change as a person gets older. Whether or not your Social Security payments are taxed is determined by your income level — specifically, what the Internal Revenue Service calls your “provisional income.”

Why is my Social Security so high? ›

Social Security benefits are based on the earnings on which people pay Social Security payroll taxes. The higher their earnings (up to a maximum taxable amount, $147,000 in 2022), the higher their benefit.

At what age do I stop paying National Insurance? ›

You stop paying Class 1 and Class 2 contributions when you reach State Pension age - even if you're still working. You'll continue paying Class 4 contributions until the end of the tax year in which you reach State Pension age. For example, you reach State Pension age on 6 September 2022.

What are the 14 states that don't tax your pension? ›

Eight states – Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming – don't tax income at all. A ninth state, New Hampshire, only taxes capital gains and dividend income. And five states – Alabama, Illinois, Hawaii, Mississippi and Pennsylvania – exclude pension income from state taxes.

How much can a retired person earn without paying taxes in 2022? ›

In 2022, this limit on your earnings is $51,960.

The special rule lets us pay a full Social Security benefit for any whole month we consider you retired, regardless of your yearly earnings.

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

If you are age 65 or older, your standard deduction increases by $1,750 if you file as single or head of household. If you are legally blind, your standard deduction increases by $1,750 as well. If you are married filing jointly and you OR your spouse is 65 or older, your standard deduction increases by $1,400.

What date will the IRS start issuing refunds 2022? ›

IRS will start accepting income tax returns on Jan. 24, 2022. * = IRS may delay start of tax season by a week or so.
...
2022 IRS Tax Refund Dates: When to Expect Your Refund.
IRS Accepts Return By:Direct Deposit Sent (Or Paper Check Mailed one week later)
Apr. 11Apr. 22 (Apr. 29)***
Apr. 18Apr. 29 (May 6)
Apr. 25May 6 (May 13)
May 2May 13 (May 20)
4 more rows
8 Jan 2022

How do I get a bigger refund in 2022? ›

How to get the biggest tax refund in 2022
  1. Claim dependents.
  2. Don't take the standard deduction.
  3. Deduct charitable contributions.
  4. Claim the recovery rebate.
  5. Contribute to your retirement.
  6. Use lesser-known credits.
10 Jan 2022

What is the 2022 income tax brackets? ›

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.

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.

Why is it called a mini-budget? ›

The budget is normally announced in the Spring, hence the term 'mini budget' for the Chancellor of the Exchequer Kwasi Kwarteng's latest Growth Plan. It details a number of economic policies including: Corporation tax rise cancelled. Basic rate of income tax cut to 19% in April 2023.

What is the tax allowance for 2022 2023? ›

For the 2022/23 tax year, the personal allowance is £12,570. This is the amount of income you do not have to pay tax on.

How much do you have to earn to pay 40 tax? ›

In the 2022/2023 tax year the higher rate 40% tax threshold starts at £50271 and stops at £150,000. This means any earnings you have over the threshold is taxed at 40% up to the £150,000 limit.

How much can you earn in the UK before 40% tax? ›

Currently, the UK basic income tax rate is 20%. This increases to 40% for your earnings above £50,270 and to 45% for earnings over £150,000. Your earnings below £12,570 are tax-free. This is called the Personal Allowance.

When setting a budget What 3 main things should you consider? ›

Start with a financial self-assessment. Once you know where you stand and what you hope to accomplish, pick a budgeting system that works for you. We recommend the 50/30/20 system, which splits your income across three major categories: 50% goes to necessities, 30% to wants and 20% to savings and debt repayment.

How do you budget when you don't make enough? ›

  1. Avoid Immediate Disasters.
  2. Review Card Payments and Due Dates.
  3. Prioritizing Bills.
  4. Ignore the 10% Savings Rule.
  5. Review Past Month's Spending.
  6. Negotiate Credit Card Rates.
  7. Eliminate Unnecessary Expenses.
  8. Journal New Budget for One Month.

Who is above 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.

What is the full meaning of chancellor? ›

/ˈtʃæn·sə·lər/ a person in a position of the highest or high rank, esp. in a government or university: Helmut Kohl became the first chancellor of a united Germany in 1990.

Why is it called a chancellor? ›

Due to his administrative tasks, the head of the clerics at the chapel of an imperial palace during the Carolingian Empire was called chancellor (from Latin: cancellarius).

What is an example of a Chancellor? ›

Chancellor is the leader of the government in Germany or Austria. The title "Chancellor" means the same thing as "Prime Minister". For example, Italy has a Prime Minister while Germany has a Chancellor.

How do you speak Chancellor? ›

Break 'chancellor' down into sounds: [CHAAN] + [SUH] + [LUH] - say it out loud and exaggerate the sounds until you can consistently produce them.

How much power does a Chancellor have? ›

The Chancellor determines who will be in the government, since he or she alone has the right to form the Cabinet. The Chancellor chooses his ministers and makes a proposal that is binding for the Federal President with regard to their appointment (or dismissal).

What is the difference between principal and Chancellor? ›

A university chancellor is the same as a university principal. The only difference is that in some countries they prefer to call the head of their university a chancellor rather than a principal. University chancellor and university principal are also synonymous with president and rector.

What powers did the Chancellor have? ›

The Chancellor proposes the candidates for ministerial office, that is the members of the Federal Cabinet, to the Federal President. Ministers can be dismissed following the same procedure. The Chancellor is also head of the Federal Cabinet and chairs Cabinet meetings.

What can the chancellor do? ›

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.

How often does the chancellor do the budget? ›

The budget statement is one of two statements made by the Chancellor of the Exchequer in the House of Commons, with the Spring Statement being made the following year. Budgets are usually set once every year and are announced in the House of Commons by the Chancellor of the Exchequer.

What is the duty of Chancellor? ›

The Chancellor is responsible for the leadership of the Governing Authority. As Chair of its meetings, he/she is responsible for ensuring that the necessary business of the Governing Authority is carried out efficiently, effectively, and in a manner appropriate for the proper conduct of public business.

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.

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.

What is an example of a chancellor? ›

Chancellor is the leader of the government in Germany or Austria. The title "Chancellor" means the same thing as "Prime Minister". For example, Italy has a Prime Minister while Germany has a Chancellor.

What is the purpose of a budget? ›

A budget helps create financial stability. By tracking expenses and following a plan, a budget makes it easier to pay bills on time, build an emergency fund, and save for major expenses such as a car or home. Overall, a budget puts a person on stronger financial footing for both the day-to-day and the long term.

How many budgets are there? ›

According to estimates, there are three types of budget in India such as surplus, balanced, and deficit. The government's budget is said to be balanced if anticipated revenues are expected to equal anticipated expenses within a given fiscal year.

What happens when a department goes over budget? ›

Projects that go over budget indicate lower control and negatively impact managers, leaders and wider organisations reputation. Plus, increased costs will affect profit margins due to additional expenses, productivity due to opportunity cost and financial stability due to decreased liquidity.

Why is it called a Chancellor? ›

Due to his administrative tasks, the head of the clerics at the chapel of an imperial palace during the Carolingian Empire was called chancellor (from Latin: cancellarius).

Who is higher than the Chancellor? ›

University president is the title of the highest-ranking officer within the academic administration of a university, within university systems that prefer that appellation over other variations such as chancellor or rector. The relative seniority varies between institutions.

How will the mini-budget affect the economy? ›

The basic rate of income tax is being cut by from 20% to 19% from April 2023. This measure was originally unveiled by Kwarteng's predecessor, Rishi Sunak, earlier this year, but was due to take affect in 2024. In a further, more controversial step, the additional rate of income tax, currently 45%, is being scrapped.

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)
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