Today, the Chancellor announced the Government’s Growth Plan making growth the government’s central economic mission, setting a target of reaching a 2.5% trend rate. He stated that sustainable growth will lead to higher wages, greater opportunities and provide sustainable funding for public services.
In addition to the measures already announced to address rising energy prices, key announcements included:
- Corporation tax rise cancelled, keeping it at 19% rather than the planned increase to 25% in April 2023.
- Basic rate of income tax cut to 19% in April 2023 – one year earlier than planned. Additionally the 45p rate will be abolished.
- Reversal of the 1.25 percentage points increase in National Insurance (for the Health & Social Care Levy), takes effect in November.
- The government will work with the devolved administrations and local partners to introduce Investment Zones across the UK, benefitting from tax incentives, planning liberalisation, and wider support for the local economy.
- The government will make the temporary £1 million level of the Annual Investment Allowance permanent, instead of letting it fall to £200,000 after 31 March 2023
- Stamp Duty Land Tax residential thresholds increased. For everyone: Stamp Duty now begins to be paid at £250,000+ (up from £125,000+); for first-time buyers: £425,000+ (up from £300,000+).
- VAT-free shopping scheme to be introduced for international tourists, timing to be confirmed.
- Alcohol duty rates are to be frozen from February 2023.
Full details of the Growth Plan can be found here.
