Image: Tax
• The basic rate of income tax will fall to 19p in the pound from April 2023. This means 31 million people will be better off by an average of £170 a year. • The 45% higher income tax rate is abolished. • It had already been announced that April’s National Insurance rise would be reversed from 6 November – saving businesses and 28 million workers money. The 1.25 percentage point hike was introduced under former chancellor Rishi Sunak. Image: Housing • To cut the stamp duty from “today”. Nothing will be paid for the first £250,000 of the property’s value – double the amount currently allowed. The threshold for first-time buyers is to rise from £300,000 to £425,000. The property value on which first-time buyers can claim relief will also rise from £500,000 to £625,000. • Household bills are expected to fall by £1,400 this year with an energy price guarantee boost and £400 grant. Millions of the most vulnerable households will receive extra payments, taking their total savings this year to £2,200. Figure: Inflation • The total cost of the energy package, including business support, for the next six months is estimated at £60bn. It is “absolutely appropriate for the government to use our borrowing powers to fund temporary measures to support families and businesses”. • Independent forecasters expect the government’s energy plan to “reduce peak inflation by around five percentage points”. • The independence of the Bank of England is ‘sacred’. • The government will set out more fully its fiscal approach going forward and the Office for Budget Responsibility will publish an economic and fiscal forecast before the end of the year. Image: Bankers bonus • The cap on bankers’ bonuses is to be lifted as part of efforts to “reassert” the UK’s position as a financial services hub. Image: Business support • The planned increase in corporate tax to 25% next year is cancelled. “We will have the lowest corporate tax rate in the G20. This will put almost £19 billion a year back into the economy,” Mr Kwarteng said. • It will legislate to require unions to put pay offers to a vote of members so that strikes can only be called when negotiations are complete. • Cut business taxes in designated areas for 10 years to support investment, jobs and growth. In talks with 38 local and mayoral combined areas in England about ‘investment zones’. The aim is to roll it out more widely across the UK. • New legislation will reduce barriers and restrictions to the construction of new road, rail and energy infrastructure. • Universal Credit claimants who earn less than the equivalent of 15 hours a week on the National Living Wage should meet regularly with their Work Coach and take active steps to increase their earnings or face a reduction in their benefits. • Introduction of VAT-free purchases for foreign visitors. • Planned duty increases on beer, cider, wine and spirits canceled
