Today’s mini-Budget is set to unleash £50bn of tax cuts on the economy, in the biggest tax giveaway in 30 years.
The chancellor is expected to unveil more than 30 measures, including plans for up to 40 investment zones, with lower rates of tax, liberalised planning rules and streamlined environmental regulations. Kwasi Kwarteng has also confirmed he will reverse the 1.25% rise in national insurance payments and scrap a planned rise in corporation tax.
Changes will also be made in the way stamp duty is paid, with a cut expected by many.
A cap on bankers’ bonuses is expected to be axed, environmental legislation will be overhauled and energy bills will be capped.
The Institute for Fiscal Studies said the impact was likely to be greater than most full Budgets, but could put the country on an “unsustainable path”, raising borrowing to £100bn a year and leaving many worse off.
The Bank of England has warned Kwarteng that the economy is in recession and said it will probably need to push interest rates higher after today’s tax-cutting mini-Budget.
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