Liz Truss is expected to announce a radical cut to stamp duty in the government’s mini-Budget on Friday.
It is understood that the new prime minister and chancellor Kwasi Kwarteng have been working on the plans for more than a month. It is unclear what form the cuts will take, although Truss has previously said the highest rate was “clogging up” the housing market.
The cuts to stamp duty are being referred to as the “rabbit” to be pulled from the hat in the mini-budget, which the government is billing as a “growth plan”.
The fiscal statement will also include plans to reverse the national insurance rise and freeze corporation tax.
Plans to bring forward cuts to income tax are likely to be saved for a full Budget before the end of the year.
Truss’s approach to stimulating growth by cutting the tax burden on the wealthy was criticised yesterday by US president Joe Biden, who will meet the PM today. He tweeted yesterday: “I am sick and tired of trickle-down economics. It has never worked.”
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