With the new governments priorities firmly set on “taxes down, borrowing up; growth”, it was unsurprising that their first task, alongside a support package to help people with their energy bills – has been to put together an emergency ‘mini-Budget’ which will take place tomorrow (23 September 2022).
If reports are to be believed, we could be in for a big surprise. The Daily Mail on 17 September cited ‘Whitehall sources’ as saying that the Chancellor is planning a ‘knock-out surprise measure’ – described as a ‘proper rabbit out of the hat moment’
Aside from the rabbit out of the hat moment, what could we be expecting to see…
The mini budget is expected to cancel the planned increase in the main rate of corporation tax, reverse the increase in national insurance which came in in April 2022 (the proposal appears to be to do this in-year) and place a temporary moratorium on the ‘green energy levy’.
There is speculation it may also end the freeze in income tax thresholds sooner than planned, that it may announce a cut in the basic rate of income tax, that ‘nanny state’ measures such as the Soft Drinks Industry Levy will be scrapped and stamp duty land tax will be cut.
Follow us on social media or keep an eye on the news page as we will be providing updates as they arise on Friday.
Kate Thorburn is Private Client Tax Manager and will be watching the mini-Budget along with the rest of our Tax team tomorrow, please feel free to call 01242 776000 or email the team on firstname.lastname@example.org.