The Chancellor has vowed to break the “vicious cycle of stagnation” and convert it into a “virtuous circle of growth,” announcing what the Government is calling a fiscal event in the House of Commons this morning
“We will be bold and unashamed in pursuing growth — even where that means taking difficult decisions,” he told the Commons
He admitted that after 12 years of Conservative led governments – that “growth is not as high as it should be”.
“We need a new approach for a new era”, he said setting a target of 2.5% growth.
He told MPs that the Government is cutting household energy bills by an expected £1,400 this year while millions of the most vulnerable households will receive additional payments, taking their total savings this year to £2,200 and revealed the cost of the energy package for business
“Based on recent prices, the total cost of the energy package, for the six months from October, is expected to be around £60bn”.
As expected he has scrapped the cap on bankers bonus’ telling MP’s that “All the bonus cap did was to push up basic salaries. It never capped total remuneration… So we are going to get rid of it.”
As expected the planned Corporation Tax increase to 25% has been cancelled.
The rate will stay at 19%, the lowest in the G20. This will support business investment and help economic growth said the Chancellor
The Annual Investment Allowance will be permanently set at its highest ever level of £1 million from 1 April 2023. This will give 100% tax relief to businesses on their plant and machinery investments up to the level of £1 million.
Also as expected from 6th November the government is cutting National Insurance by 1.25 percentage points and cancelling the Health & Social Care Levy.
From April 2023 the basic rate of Income Tax will be cut from 20p to 19p-It will he says, represent a tax cut for 31million people
While in a surprise move he has also announced the abolition of the top 45p rate of income tax
The stamp duty threshold will rise from £125,000 to £250,000.For first-time buyers it will rise from £300,000 to £425,000
He also pledged to simplify the tax system, as well as to cut taxes and promised to introduce a modern, digital, VAT-free shopping scheme for international tourists.
This will support high streets, shopping centres and airports, creating jobs in the retail and tourism sectors
Alcohol duty will be frozen from February 2023.This, he said, is a tax cut worth £600 million & will save the consumer 7p on a pint of beer, 4p on a pint of cider, 38p on a bottle of wine, & £1.35 on a bottle of spirits.
He also announced that The Government will legislate to require trade unions to put pay offers to a member vote so strikes can only be called once negotiations have fully broken down
The government has agreement in principle with 38 areas to establish tax-cutting Investment Zones which will drive growth & unlock housing development.
