Chancellor Kwarteng reveals plan for tax cuts in mini-budget
Kwasi Kwarteng was appointed Chancellor of the Exchequer on 6 September 2022 amidst a turbulent time for the Conservative Government, and within the wider context of financial hardship for many individuals and businesses.
Chancellor Kwarteng’s first task was to deliver a mini-budget — effectively an emergency budget — which could drive forward the manifesto pledges asserted by the new Prime Minister. This undertaking was further weighted by the economic environment that prevails presently. The contextual financial backdrop of the highest level of borrowing in living memory and the highest interest rates in over 15 years no doubt complicated the Government’s financial goals for the country.
On a personal level, many individuals are struggling — and indeed may suffer real financial hardship — due to a rising cost of living based on the energy crisis and record inflation levels.
Therefore, it is not surprising that even in the international marketplace the pound has fallen to a 40-year low level. This is after all one of the most turbulent economies experienced in Europe since the end of World War II… further impacted by the invasion of Ukraine and its implication on the cost of energy.
The theme of this mini-budget was making tax cuts to boost economic growth within the United Kingdom, alongside stimulating building projects to boost the resource of new homes available. The Chancellor did unveil the most substantial package of tax cuts seen in 50 years; hailed by the Conservative party as a “new era” for the economy. Many financial commentators have raised concerns of additional borrowing and its long-term results, but only time will tell if Chancellor Kwarteng’s fiscal package will produce either positive growth or greater negative consequences.
But many of us are rightly worried about today, and whether this mini-budget will help us and our business through this financial period of uncertainty.
WHA have prepared the enclosed summary which highlights all of the pertinent announcements. Please access this by clicking on the link below:
Should you have any queries, or require any assistance, please do not hesitate to contact the WHA team – as always, we are here to support and guide you.
The WHA Tax Team
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