Chancellor reveals growth plan

The chancellor has announced a Growth Plan with the intention to tackle energy costs and inflation.

The Chancellor of the Exchequer, Kwasi Kwarteng, said: “Economic growth isn’t some academic term with no connection to the real world. It means more jobs, higher pay and more money to fund public services, like schools and the NHS.

“This will not happen overnight but the tax cuts and reforms I’ve announced today – the biggest package in generations – send a clear signal that growth is our priority.

“Cuts to stamp duty will get the housing market moving and support first-time buyers to put down roots. New Investment Zones will bring business investment and release land for new homes in communities across the country. And we’re accelerating new road, rail and energy projects by removing restrictions that have slowed down progress for too long.

“We want businesses to invest in the UK, we want the brightest and the best to work here and we want better living standards for everyone.”

Chancellor Kwasi Kwarteng announced cuts to Stamp Duty Land Tax with the nil rate band to be double from £125,000 to £250,000. First time buyers will pay no stamp duty up to £425,000.

The chancellor also announced that the Energy Price Guarantee will save the average household £1,000 a year and the Energy Bill Relief scheme halving business energy bills.

He also cancelled the planned rise in corporation tax, so it is the lowest in G20 at 19 per cent and reversed the rise in National Insurance contributions.

It has also been confirmed that the government is in discussion with 38 local and mayoral combined authority areas in England to set up investment zones which will offer targeted and time-limited tax cuts for businesses.

With regards to income tax, a 1p cut to the basic rate of income tax has been announced.

The chancellor has also revealed plans to to accelerate new roads, rail and energy infrastructure, with new legislation to make it quicker to plan and build new roads.

Image: Chris McAndrew / UK Parliament