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UK Chancellor unveils mini-budget to tackle runaway inflation


https://sputniknews.com/20220923/british-chancellor-unveils-mini-budget-to-tackle-runaway-inflation-1101117219.html

UK Chancellor unveils mini-budget to tackle runaway inflation

UK Chancellor unveils mini-budget to tackle runaway inflation

New Chancellor Kwasi Kwarteng confirmed many of the rumors circulating around his autumn statement on Friday. But his estimate of the cost to the taxpayer of the… 23.09.2022, Sputnik International

2022-09-23T10:37+0000

2022-09-23T10:37+0000

2022-09-23T10:37+0000

kwasi kwarteng

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Europe

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Britain’s Chancellor of the Exchequer has unveiled his ‘mini-budget’ in response to the energy crisis. Kwasi Kwarteng presented a series of pro-big business and anti-union measures in Parliament on Friday morning. by government sanctions on Russian energy imports. He said the most worrying issue for people today was the cost of energy, with annual bills set to reach £6,500 next year. And the Chancellor confirmed that the previous scheme of £400 household payments would continue, further reducing costs. “This government is on the side of the British people,” he insisted. we are negotiating new long-term energy contracts with suppliers. “As expected, Kwarteng pledged to help businesses as well as domestic energy consumers. The Bank of England would offer ’emergency liquidity’ to energy companies. Said the Bank’s independence England was ‘sacrosanct’ – but had weekly conversations with the government Promising to reverse the impending recession predicted by the central bank, Kwarteng said the government would ‘turn this vicious cycle of stagnation into a virtuous one growth”. unsigned legislation to force unions to submit all management pay offers to a vote of their members. cap on bankers’ bonuses, Kwarteng said in justification: “We need global banks to create jobs here, invest here and pay taxes here in London, not in Paris, not in Frankfurt, not in New York”. And he announced that his predecessor Rishi Su’s tax hikes nak would be cancelled. The rise in corporation tax from 19 to 25 per cent, which was due to take place next year, will be reversed. And the 1.25% increase in the national insurance, social security tax, will be canceled from November 6. “We will have the lowest corporate tax rate in the G20,” boasted Kwarteng. the National Health Service backlog caused by the COVID-19 lockdown and for aged care reforms. And in another bonus for the highest paid, the Chancellor announced the removal of the additional 45% rate of tax on annual earnings over £150,000 from next April, leaving them to pay the top 40% rate for income over £50,000. But ordinary workers also got an early tax cut, as Kwarteng brought forward the planned 20% basic rate cut by April 19, 2023. On Brexit, Kwarteng said the government “ would “automatically overrule European Union regulations by the end of 2023, forcing ministries to review all “retained legislation”. In a bid to promote tourism, he announced that overseas visitors would benefit from VAT-free shopping in the UK. And in a move that will be popular with middle-income families and the property sector, Kwarteng has announced that the threshold for paying stamp duty on property purchases will immediately double to £250,000 for all buyers and rise from 300 £000 to £425,000 for the first time There was also good news for pubs and breweries, as Kwarteng announced that a planned increase in duties on beer, cider, wine and spirits will be cancelled. larger kegs over 20 liters – a measure to help the thousands of small UK craft breweries.

https://sputniknews.com/20220921/uk-government-unveils-energy-support-plan-for-hard-hit-businesses-1101037297.html

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kwasi kwarteng, europe, uk, budget, inflation, recession

kwasi kwarteng, europe, uk, budget, inflation, recession

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New Chancellor Kwasi Kwarteng confirmed many of the rumors circulating around his autumn statement on Friday. But his estimate of the cost to the taxpayer of the government’s cap on energy bills was far lower than those of economists.

Britain’s Chancellor of the Exchequer has unveiled his ‘mini-budget’ in response to the energy crisis.

Kwasi Kwarteng presented a series of pro-big business and anti-union measures in Parliament on Friday morning.

He told a packed House of Commons that the government would continue to intervene to limit rising gas and electricity bills for households and businesses caused by government sanctions on Russian energy imports.

He said the most worrying issue for people today was the cost of energy, with annual bills set to reach £6,500 next year.

“We were never going to let that happen,” Kwarteng said, referring to the already announced price cap of £2,500 per year. “People need to know that help is coming. And help is coming.”

And the Chancellor confirmed the previous scheme of £400 household payments would continue, further reducing costs. “This government is on the side of the British people,” he insisted.

Kwarteng revealed the cost of the energy aid packages would be around £60billion, half the previous forecast, adding: “We expect the cost to come down as we negotiate new long-term energy contracts with suppliers”.

As expected, Kwarteng is committed to helping businesses as well as home energy consumers.

He said that to protect energy companies from wildly fluctuating market prices, an “energy market financing scheme” in conjunction with the Bank of England would provide “emergency liquidity” to energy companies.

Said the independence of the Bank of England was ‘sacrosanct’ – but had weekly conversations with the government.

Promising to reverse the impending recession predicted by the central bank, Kwarteng said the government would “turn this vicious circle of stagnation into a virtuous circle of growth.”

People watch live pub news showing Queen Elizabeth II's funeral service in a London pub - Sputnik International, 1920, 21.09.2022

UK government unveils energy support plan for hard-hit businesses

workers and bosses

Condemning ongoing strikes by “militant” unions in the railways and other public services, Kwarteng announced legislation requiring unions to put all management wage offers to a vote by their members.

“We will legislate to force unions to put wage offers to a member vote, to ensure that strikes can only be called once negotiations have genuinely broken down,” he said.

And he validated reports that benefit claimants will see their payments reduced if they “do not fulfill their job-search commitments”.

Confirming the lifting of the cap on bankers’ bonuses, Kwarteng said in justification: “We need global banks to create jobs here, invest here and pay taxes here in London, not in Paris, not in Frankfurt, not in New York”.

“All the bonus cap has done is raise bankers’ base salaries or stimulate business outside of Europe,” he said. “He never capped total compensation, so let’s not sit here and pretend otherwise. So we’ll get rid of that.”

And he announced that his predecessor Rishi Sunak’s tax hikes would be reversed.

The rise in corporation tax from 19 to 25 per cent, which was due to take place next year, will be reversed. And the 1.25% increase in the national insurance, social security tax, will be canceled from November 6.

“We will have the lowest corporate tax rate in the G20,” boasted Kwarteng.

These tax increases were imposed to pay for the National Health Service backlog caused by the COVID-19 lockdown and for aged care reforms.

And in another bonus for the highest paid, the Chancellor announced the removal of the additional 45% tax rate on annual earnings over £150,000 from next April, leaving them to pay the top 40% rate for income over £50,000.

“It will simplify the tax system and make Britain more competitive,” Kwarteng said. “It will reward enterprise and hard work. It will drive growth. It will benefit the whole economy and the whole country.”

But ordinary workers also got an early tax cut, as Kwarteng brought forward the planned 20% base rate cut by April 19, 2023.

Environmental protester against fracking in Manchester, UK - Sputnik International, 1920, 22.09.2022

UK government lifts ban on shale gas fracking in response to energy crisis

Reduce red tape

On Brexit, Kwarteng said the government would automatically “reverse” European Union regulations by the end of 2023, forcing departments to review all “retained legislation”.

In a bid to promote tourism, he announced that overseas visitors would benefit from VAT-free shopping in the UK.

And in a move that will be popular with middle-income families and the property sector, Kwarteng has announced that the threshold for paying stamp duty on property purchases will immediately double to £250,000 for all buyers and rise from 300 £000 to £425,000. for first-time buyers.

There was also good news for pubs and breweries, as Kwarteng announced that a planned increase in duties on beer, cider, wine and spirits will be cancelled.

And he said ‘traffic relief’ on beer sales would be extended to cover larger kegs over 20 liters – a measure intended to help Britain’s thousands of small craft breweries.



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