The FT’s quick guide to the UK mini-Budget

2 min


140
79 shares, 140 points

UK chancellor Kwasi Kwarteng declared a “new era” of growth with the announcement of his mini-Budget on Friday. The set of tax cuts, worth £45bn, were the biggest since 1972.

However, the plan will also push up public borrowing at a time when interest rates are rising and the economic outlook is deteriorating. After his announcement, sterling fell to its lowest level since 1985 and gilt yields jumped, reflecting investor nervousness around the measures.

You are seeing a snapshot of an interactive graphic. This is most likely due to being offline or JavaScript being disabled in your browser.

Tax cuts

  • The set of tax cuts will cost the economy £45bn by 2026-27, the equivalent of 1.5 per cent of gross domestic product

Bar chart of Tax cuts (% of GDP) showing Today's statement represents the  biggest tax cut since 1972

Key tax reductions

£45bn

In tax cuts by 2026-27

19%

Basic rate of income tax, cut from 20% from April 2023

40%

Additional rate of income tax for the highest earners cut from 45%

19%

Corporation tax to stay at its current level, the lowest in the G20

£250, 000

Property value at which homebuyers start paying stamp duty, up from £125,000

1.25%

Proposed rise in national insurance will be reversed from November 6

Bankers’ bonuses

Strikes

Line chart of weekly earnings at constant 2015 prices, showing real wages are falling sharply

Investment zones

  • Tax incentives and liberalisation of planning regulations for about 40 so-called “investment zones”

  • Government announces discussions are already taking place with Tees Valley, West Midlands, Norfolk and the West of England

100%

Relief from business rates on newly occupied business premises

100%

First-year allowance on qualifying expenditure for companies’ purchasing plant and machinery assets

100%

Stamp duty tax relief for land and buildings bought for use or development for commercial purposes

Markets reaction

  • Sterling slipped 3 per cent to $1.09 on Friday morning after the announcement — its lowest level since 1985

  • The pound also dropped as much as 1.7 per cent against the euro to €1.123

  • The yield on UK government bonds rose sharply together with expectations of interest rate rises

You are seeing a snapshot of an interactive graphic. This is most likely due to being offline or JavaScript being disabled in your browser.


Source: Financial Times


Like it? Share with your friends!

140
79 shares, 140 points

What's Your Reaction?

Cute Cute
16
Cute
Fun Fun
8
Fun
Hate Hate
2
Hate
Confused Confused
18
Confused
Fail Fail
10
Fail
Geeky Geeky
5
Geeky
Love Love
24
Love
OMG OMG
18
OMG
Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format