The chancellor is set to announce tens of billions of pounds’ worth of extra spending and tax cuts today in a mini-budget, officially known as a “fiscal event”.
Kwasi Kwarteng will pledge to “turn the vicious cycle of stagnation into a virtuous cycle of growth” as he sets out the new government’s approach to the economy.
His statement is expected to set out how the government will fund the energy price cap for households and businesses as well as details of many of Liz Truss’s tax-slashing promises.
The government is dubbing it a “growth plan” as the UK faces a cost-of-living crisis, recession, soaring inflation and climbing interest rates.
Mr Kwarteng announced yesterday he was cancelling Rishi Sunak’s 1.25 percentage-point rise in National Insurance from 6 November – but Treasury figures revealed the change would benefit higher earners vastly more than the poorest.
The chancellor is also set to axe a planned increase in corporation tax and scrap the cap on bankers’ bonuses.
It has been reported that he will cut stamp duty, and proposals to fast-track a scheduled 1p cut to income tax and to slash VAT are reportedly also being considered.