Kwasi Kwarteng has unveiled the government’s mini-budget outlining its fiscal priorities “in one of the biggest interventions ever made”.
Standing at the despatch box in the House of Commons earlier today, the Chancellor reassured the public that “help is coming” as Britons are feeling the financial pressure caused by the energy crisis.
“During the worst energy crisis in generations, this government is on the side of the people”, he noted.
Mr Kwarteng has explained the three steps the government will take to tackle the rising cost of living and the soaring energy prices.
He has highlighted that the recently announced Energy Price Guarantee will freeze household bills to £2,500 for two years, a saving of £1,000 for every household.
Kwasi Kwarteng added that “we are cutting the cost of everyone’s energy” – businesses, charities and the public sector will also be protected with a scheme similar to the price cap that will be applied to UK homes.
Thirdly, he has said the government plans to launch an ‘Energy Markets Financing’ scheme that will allow energy traders to receive much-needed support amid the crisis.
The scheme will be delivered with the Bank of England – this is expected to provide a 100% guarantee for commercial banks to offer emergency liquidity to energy traders.
Kwasi Kwarteng said the energy package would cost £60 billion for the six months from October.
The Chancellor has announced tax cuts, including cutting stamp duty for those interested in buying properties and scrapping a planned rise in corporation tax.
Corporation tax was about to rise from 19% to 25%, under plans laid out by the previous government.
He also said: “I can confirm that this year’s 1.25% point rise in National Insurance will be reversed on 6th November.”
Mr Kwarteng also signalled the end of the cap on bankers’ bonuses.
The government hopes that the mini-budget will supercharge economic growth as the Bank of England stated yesterday the UK might already be in recession.
Kwasi Kwarteng said: “Growth is not as high as it should be. We need a new approach for a new era.”