Live highlights of announcements made in the Mini-Budget 2022, held on 23 September 2022 by Kwasi Kwarteng, Chancellor of the Exchequer.
The Chancellor repeated details of cuts to energy bills under:
These measures will cost an estimated £60billion.
New measures announced today:
- The Office of Budget Responsibility (OBR) will report later on in the year (we expect by early November).
- A new approach to enterprise reforming the supply side of the economy.
- Planning reforms, including disposal of surplus government land.
- Employment: cuts to benefits for those who are unemployed and not finding work.
- Incentives to get over-50s back into work
- Trade Unions: Legislate to put strike action to a members' vote.
- Pensions: Accelerate pension fund investment reform.
- Funding R&D: £500m for new innovative funds.
- Bankers bonuses: cap lifted.
- New investment zones: with accelerated tax reliefs for capital expenditure, stamp duty land tax and employers' National Insurance Contributions.
Taxation
- Reversal of Corporation Tax rise: to plough £60bn back into the economy.
- Capital allowances: Annual Investment Allowance (AIA) will remain at £1 million.
- Company Share Ownership Plan (CSOP): increase in limits.
- Seed Enterprise Investment Scheme (SEIS): an increase in limits.
- Wind down of the Office of Tax Simplification.
- Off-Payroll Working: simplify IR35 and repeal the 2017 and 2021 reforms.
- VAT: re-introduce VAT-free shopping for overseas visitors.
- Reforms to alcohol duties: planned duty rate increases to be cancelled.
National Insurance
- A reversal of the extra 1.25% in National Insurance to apply from 6 November 2022.
Dividends
- A reversal of the increase in dividend tax.
Stamp Duty Land Tax (from midnight)
- The main SDLT threshold is increased to £250,000.
- The first-time buyers' relief threholds are increased to £425,000, with an upper limit for relief of £625,000.
Income tax: from next year April 2023
- Cut the basic rate of income tax to 19%.
- Higher rate Income Tax of 45% to be abolished.
