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Kwasi Kwarteng reveals plan for tax cuts in mini-Budget

September 23rd, 2022

kwasi kwarteng mini budget

Kwasi Kwarteng has scrapped the top rate of income tax and slashed stamp duty in a multibillion pound package of tax cuts in a bid to spur growth.

The Chancellor confirmed new investment zones to boost business spending and announced that households will benefit from the reversal of the National Insurance rise from November. The basic rate of income will be cut from 20pc to 19pc from April 2023.

He said: “We are determined to break that cycle. We need a new approach for a new era focused on growth.

“Our aim, over the medium term, is to reach a trend rate of growth of 2.5pc and our plan is to expand the supply side of the economy through tax incentives and reform.  That is how we will deliver higher wages, greater opportunities, and fund public services, now and into the future.”

Here are all the key points from Mr Kwarteng’s speech:


  • The Chancellor has abolished the top rate of income tax and will cut the basic rate of income tax from 20pc to 19pc from April 2023. From next year, the UK will have a single higher rate of income tax of 40pc with the additional rate of 45pc scrapped.

  • Mr Kwarteng announced that the planned increase in corporation tax from 19pc to 25pc next year has been cancelled.

  • He also confirmed that the 1.25 percentage point increase in National Insurance will be scrapped from November. The Chancellor said this would save workers on average £330 per year.

  • Mr Kwarteng also announced a stamp duty cut. Homebuyers will not buy stamp duty on the first £250,000 of the property’s value, instead of the current level of £125,000. First-time buyers will not pay stamp duty up to £425,000, up from £300,000.

  • The Office of Tax Simplification – an independent body advising the Chancellor on tax – will be wound down.

  • Planned increases in the duty rates for beer, cider, wine and spirits will be cancelled.

Business investment

  • The Chancellor announced the Government will liberalise planning to help speed up investment. “We are getting out of the way to get Britain building,” he said.

  • Mr Kwarteng said the reforms will unpick the “complex patchwork of planning restrictions and EU-derived laws that constrain our growth”.

  • He also announced new investment zones that will lure in businesses to almost 40 areas through tax breaks on national insurance, stamp duty and business rates.

  • He said reforms of the pension charge cap will unlock pension fund investment while £500m will put to support “new innovative funds”.

  • Mr Kwarteng extended schemes aimed at boosting investment in startups beyond 2025, including the Enterprise Investment Scheme.

Labour market

  • The Chancellor announced that the bankers’ bonus cap will be scrapped while trade union rules will be toughened up.

  • New laws will require unions to put pay offers to a member vote, ensuring that strikes are only called once negotiations have “genuinely broken down”, he said.

  • A recent shake-up to the tax rules for off-payroll workers will be repealed.


  • Mr Kwarteng laid out details of the previously announced energy support for households and business.

  • The Energy Price Guarantee will cap the unit price that consumers pay for electricity and gas, limiting the average household bill to £2,500

  • The Energy Markets Financing Scheme will provide loans to cash-strapped energy suppliers while businesses will benefit from a discount on their bills.

This content was originally sourced and posted at Yahoo Canada Sports – Sports News, Scores, Rumours, Fantasy Games, and more »
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