Today’s mini-budget summary
The Chancellor’s mini-budget statement has been highly anticipated as people await to see how Kwasi Kwarteng’s first-ever budget speech will help ease the burden of the cost of living crisis.
On Friday 22nd September 2022, Mr Kwarteng unveiled the following measures in what he claims are the biggest tax cuts in a generation:
Income tax
There will be a cut in the basic rate of income tax from 20% to 19% from April 2023, which the Government estimates will help 31 million people receive £170 a year more in their pay packets.
In a surprise move, Kwarteng also revealed he was scrapping the 45% higher rate of income tax in England, Wales and Northern Ireland, instead keeping the one single higher rate of 40% from April next year.
National Insurance
Recent rises in National Insurance caused controversy for many, but from 6th November, the new rises will be reversed back to previous rates, saving workers and employers an average extra 1.25p in the pound.
Corporation Tax
The Chancellor has also scrapped proposed plans to increase Corporation Tax, which stood to rise from 19% to 25% in April 2023.
Stamp duty land tax
The Chancellor announced a cut to stamp duty land tax (SDLT) which is paid when people buy a property in England and Northern Ireland, so that no SDLT will be paid on the first £250,000 and for first-time buyers that rises to £425,000. This comes into operation today. You can read more about this in our blog coming soon.
Cost of living
There will be a freeze on energy bills, which the government claims will reduce inflation by 5 percentage points. Total cost for the energy package is expected to be around £60bn for the six months from October.
The Chancellor has also scrapped planned increases in the duties on beer, cider, wine, and spirits.
If you’d like to know more about how today’s announcements affect you or your business, get in touch with Downs Solicitors to see how we can help.
