Factbox-Britain sets out tax cuts and other measures to boost growth By Reuters
Economy 20 minutes ago (Sep 22, 2022 22:57)
© Reuters. FILE PHOTO: New British Chancellor of the Exchequer Kwasi Kwarteng walks outside Number 10 Downing Street, in London, Britain September 6, 2022. REUTERS/Toby Melville//File Photo
LONDON (Reuters) – Britain’s new finance minister Kwasi Kwarteng unveiled a slew of measures on Thursday including the reversal of an increase in payroll tax in an effort to boost economic growth.
He is expected to detail more measures in a mini-budget on Friday, including tax cuts, energy subsidies and planning reforms.
Below is a brief overview of the key measures announced so far, and additional steps that could be announced on Friday.
PAYROLL TAX RISE REVERSED
A 1.25 percentage point increase in payroll tax – or national insurance – that took effect earlier this year will be reversed from Nov. 6.
DIVIDEND TAX RISE SCRAPPED
An increase to dividend tax rates which had been brought in alongside the payroll tax increase – to raise contributions from those who are paid through different channels – will be scrapped from April 2023.
Kwarteng is expected to say on Friday the government is in talks with 38 local authority areas in England to set up investment zones offering “generous, targeted and time-limited tax cuts” for businesses to create jobs and increase productivity.
The zones will also see reforms to environmental regulation and streamlined planning polices.
Kwarteng will also set out measures to speed up the delivery of around 100 major infrastructure projects including wind farms, roads and railways.
The measures will include legislation in the coming months to help reduce “unnecessary burdens” to infrastructure projects.
NO CORPORATION TAX INCREASE
Britain’s 19% corporation tax rate – the lowest among the G7 club of rich nations – had been due to rise to 25% in 2023 but Friday’s mini-budget is expected to scrap those plans.
STAMP DUTY CUT
Stamp duty on house purchases will be cut to boost economic growth by enabling first-time buyers to get on the property ladder, the Times newspaper reported on Wednesday.
Factbox-Britain sets out tax cuts and other measures to boost growth
By David Milliken LONDON (Reuters) – New British finance minister Kwasi Kwarteng will detail close to 200 billion pounds ($225 billion) of tax cuts, energy subsidies and planning…
(Updates Trenchev’s estimate for unsecured lending) By Elizabeth Howcroft and Hannah Lang LONDON/WASHINGTON (Reuters) -On May 11, Scott Odell, an analyst at British crypto lender…
By Herbert Lash and Marc Jones NEW YORK/LONDON (Reuters) – The yen spiked higher on Thursday after the Federal Reserve’s strong stance on rates the day before roiled the outlook…
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.