Today's fiscal event was a vote of confidence in Britain. Focused on delivering growth, it will reduce tax, help cushion the impact of rising costs, and incentivise investment in the UK. The announcements include:
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1.25% National Insurance rate rise has been cancelled from 6 November
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Planned 6% Corporation Tax rise will be cancelled
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New investment zones will be created, with further tax incentives for new businesses in these areas
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Basic rate of income tax to be cut to 19p from April 2023
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45p top rate of income tax scrapped
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Permanent Stamp Duty thresholds raised by £125,000
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Legislation is to be introduced to accelerate the delivery of around 100 major infrastructure projects, including transport, energy and digital schemes
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Trade Unions will have to put pay offers from employers to members before calling for strike action
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The annual investment allowance for businesses will be permanently set at £1 million from April 1 next year, giving 100% tax relief to businesses who invest in plant and machinery
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IR35 rules will be simplified, with 2017 and 2021 reforms to be repealed.
As previously announced, households and businesses will benefit from the Energy Price guarantee, which sets maximum unit price for energy, reducing household bills on average by £1,000 at current prices. Bills have also been capped for six months for businesses, charities and public sector organisations such as schools and hospitals from October.
The positive impact of the measures this government is taking can already be seen - inflation forecasts are falling, reducing the cost pressures households and businesses will face.
Growth is not delivered by the public sector. This ambitious statement incentivises private sector growth that will generate more revenue, raise dividends supporting our pensions and enable higher wages. Through growth we can see businesses and households prosper and have more revenue to fund the services we all rely on.
This statement sets an economic vision, based on the principles that economic growth brings prosperity, and that people should be able to keep more of the money they earn. I welcome these announcements which will support households, businesses and our communities, and I share the Chancellor’s confidence in Britain.
