Plans for tax cuts are set to be announced
Liz Truss and Kwasi Kwarteng could be set to announce an ’emergency budget’ next week, reports suggest. The news comes following a Downing Street lobby briefing earlier today.
Liz Truss has previously promised a ‘fiscal event’ – understood to be an emergency budget – in September. However, the suspension of parliament following the death of the Queen threw this into question. Shortly after the Queen’s funeral on September 19, parliament will enter recess for the period covering the Labour and Conservative Party conferences. In order for a mini budget to take place, therefore, parliament would need to be recalled next week.
According to reports, this appears to be the government’s current plans. The prime minister’s spokesperson was asked at the lobby briefing whether there would be a ‘fiscal event’ next week and responded, “We are still planning to deliver a fiscal event this month. We would not do that in recess. Beyond that, we have not set out a date.”
It is expected that the ’emergency budget’ will set out more detail on the government’s plans to freeze the energy price cap, including – crucially – how it will be financed.
Truss and Kwarteng are also expected to set out their plans for tax cuts – a central plank of the Truss leadership campaign. She has vowed to scrap the planned corporation tax rise, cancel the rise in national insurance and abolish green levies on energy. Alongside this, she has also suggested she intends to ramp up the use of so called ‘freeports’ which would provide tax cuts for businesses operating in them.
Chris Jarvis is head of strategy and development at Left Foot Forward
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