Last Updated on 20/10/2023 by Samantha Lewis
The Chancellor, Kwasi Kwarteng, has this morning, announced his mini-budget, here are the main headlines on the measures and policies.
- The previously announced corporation tax rise to 25% will now not happen and it will remain at 19%
- From 6th November the government is cutting National Insurance by 1.25 percentage points and cancelling the Health & Social Care Levy.
- He confirmed the previously announced energy price caps (Energy Bill Relief Scheme) and energy support package for domestic and non-domestic users.
- “The total cost of the energy package, for the six months from October, is expected to be around £60bn.”
- New legislation to reform planning permission for major infrastructure projects.
- Changes to Universal Credit to “encourage more people into work.” This means more people who receive this benefit will have to: meet regularly with their work coach, take steps to increase their earnings, and face benefits reductions if commitments aren’t met.
- Widening the criteria of the Seed Enterprise Investment Scheme (SEIS), including allowing firms to now raise £250,000 under the scheme.
- The introduction of a modern, digital, VAT-free shopping scheme for international tourists.
- From 6th November the government is cutting National Insurance by 1.25 percentage points and cancelling the Health & Social Care Levy.
- Abolish the 45p higher tax rate, to 40p for the wealthiest.
- From April 2023 the basic rate of Income Tax will be cut from 20p to 19p.
- 38 new Investment Zones – including tax relief for businesses, and land purchases (no stamp duty)
What do you think?
BHTA Chief Executive Office, David Stockdale commented:
“Positive announcements need result in positive actions, and some of the cuts announced today will have a positive impact. I am concerned, however, that the amount of borrowing needed for this type of economic recovery, if it doesn’t work, could cause an even bigger crisis for the economy in the coming months and years, with consequences on future health and social care investment.
We will, in the next few weeks, be launching our own plan to help businesses and consumers in these unprecedented times”
Here at the BHTA would like to hear what our members think of the latest announcements.
Will they help your business? What further measures would you like to see introduced to help us all through a cost of living crisis, Brexit, post-Covid supply issues, high-interest rates, and low value of the pound globally?
You can contact us at marketing@bhta.com with your feedback.
