LONDON (Reuters) – Britain’s new finance minister, Kwasi Kwarteng, unveiled a slew of measures on Thursday, including scrapping a payroll tax hike to boost economic growth.
He is expected to detail more measures in the 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 other possible measures to be announced on Friday.
Payroll tax hike reversed
Payroll tax increase of 1. 25 percentage points – or National Insurance – earlier this year Effective coverage will be cancelled from November 6th.
Dividend tax hikes have been removed
Dividend tax hikes that have been introduced in addition to raising payroll taxes – to boost donations from those paying through different channels – will be Cancelled from April 2023.
Kwarteng is expected to say on Friday that the government is in talks with 38 local authorities in England to establish Investment Zones, which provide businesses with “generous, targeted and time-bound tax cuts” to create jobs and boost productivity.
These areas will also undergo environmental regulatory reforms and streamlined planning policies.
Kwarteng will also develop measures to expedite the delivery of approximately 100 Major infrastructure projects.
These measures will include legislation in the coming months to help ease “unnecessary burdens” on infrastructure projects.
No corporate tax increase
% corporate tax rate in the UK – lowest rich country in the G7 club The – was supposed to go up to 25% in 25, but Friday’s small budget is expected to scrap those plans.
Stamp duty relief
Stamp duty relief for home purchases will boost economic growth, enabling first-time homebuyers to Climb the real estate ladder.