The disastrous Mini Budget on 23 September was badly received and in its tax cutting wake the UK economy and the new Truss government were thrown into chaos. After sacking her Chancellor and the resignation of her Home Secretary, Liz Truss announced her resignation as Prime Minister today after only 44 days in office.
From the headline announcements in the 23 September Mini Budget – what still stands?
- The 45% top rate of income tax on earnings above £150,000 was abolished, leaving 40% as the higher rate of tax – scrapped by Kwasi Kwarteng in a major U turn
- Cancelling the planned rise in corporation tax from 19% up to 25% – reversed, so rates will rise as planned – annouced by Jeremy Hunt on his first day in office
- The basic rate of income tax will be cut to from 20% to 19% from 6 April 2023 – Scrapped and the Basic Rate will remain at 20%
Still standing for now…
- The cap on bankers’ bonuses was lifted – Still standing for now
- The Stamp Duty threshold was raised to £250,000 and for first time buyers it’s £425,000 – With interest rate rises, the housing market will need all the help available, so this will probably remain
- The 1.25% increase in National Insurance which came in a few months ago has been reversed from November 2022 – Never a popular move, this reversal will probably survive