Government announces mini-budget - What this means for our Members...

Here are some of the key points from the Government’s September mini-budget statement and what it means for our Members...

Taxes

• The basic rate of income tax will cut to 19% from April 2023, meaning 31 million people will be better off by an average £170 a year.
• The 45% higher rate of income tax will also be abolished.
• The National Insurance increase of 1.25% implemented in April will be reserved from 6 November, which will save money for both workers and businesses.

Other Impacts

• The planned increases in duties on beer, cider, wine and spirits are cancelled.
• Immediate reduction in Stamp Duty with the threshold for no stamp duty doubling from £125,000 to £250,000. First-time buyer exemption also increased to £425,000. The expected impact is that 200,000 more people will not pay any stamp duty.
• The energy price guarantee and £400 grant are expected to cut the average household bills by £1,000 this year.

Businesses

• The corporation tax rise from 19% to 25% in April has been cancelled.
• The Government is discussing setting up investment zones with 38 local areas in England, including Greater Manchester, which will offer lower taxes to stimulate investment.

The package represents a tax cut across a range of people and businesses with the aim of stimulating growth, which will hopefully generate more tax income in the longer term.