Mini-Budget Statement

With the Bank of England raising interest rates by 50 basis points to 2.25% and inflation currently sitting at 9.9%, the Prime Minister, Liz Truss, has instructed her new Chancellor, Kwasi Kwarteng, to put forward a mini budget to provide some welcome relief and to help stimulate growth.

Mr Kwarteng has announced a “Growth Plan” with 30 new measures to promote economic growth and break the cycle of stagflation, saying he would like to accelerate the UK economy so that it expands by an average of 2.5%.

Some of the key points that have been announced are:

• Basic rate income tax has been cut to 19p in the £1 starting in April 2023. And the top rate of 45p will be scrapped.
• The level at which house buyers will start paying stamp duty has doubled to £250,000. First time buyers will pay no stamp duty up to £425,000.
• Discounted stamp duty rates will be available to first-time buyers on properties costing up to £625,000, up from £500,000.
• Corporation tax on company profits will remain at 19% and the previously planned increase will now be reversed.
• The cap on banker’s bonuses is to be scrapped.