Main points of today’s mini budget

Key points from the Chancellor’s announcement today:

  • Household energy bills will be frozen at £2,500. In addition, the scheduled rebate of £400 per household will still be paid.

  • The government will subsidize wholesale energy prices for businesses, including schools and pubs.
  • The government’s plan will reduce peak inflation by 5%.
  • The cost of the energy package will be £60 billion over the next six months.
  • Infrastructure planning will be streamlined to facilitate the process, with particular emphasis on transport, energy, telecommunications and housing.
  • Personal benefits will be reduced if individuals do not meet their job search requirements.
  • Legislation will be introduced to force unions to put wage offers to the vote of their members, with the aim of reducing the number of strikes.
  • The cap on banker bonuses will be removed. The Chancellor promised further regulatory reforms to follow.
  • Investment zones will be set up, offering tax breaks, as well as reductions in stamp duties, business tariffs and national insurance levies. Four regions in contention include Tees Valley, West Midlands, Norfolk and the West of England.
  • The overhaul of tax systems will mean that next year’s increase in corporation tax from 19% to 25% will be removed and will remain at 19%.
  • The government will encourage increased shareholding.
  • European Union laws will be removed to ease the burden on businesses.
  • Foreign visitors will benefit from VAT-free purchases.
  • Planned alcohol duty increases for beer, cider, wine and spirits will be reversed.
  • National Insurance increases will be reversed.
  • Stamp duty will be reduced resulting in zero duty on properties under £250,000, which is expected to benefit 200,000 people.
  • From April 21, 2023, the 45% rate of personal income tax will be abolished, and a reduction in the basic rate to 19% will be introduced a year earlier in April 2023.

Shortly after the Chancellor sat down, the pound fell against the US dollar to $1.115

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