Mini-budget LIVE: Britons brace for tax bonfire as Truss prepares cuts

Liz Truss defends her tax cut plans

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Ahead of the announcement, the Chancellor confirmed that the 1.25 National Insurance Hike will be reversed from November 6. The rise was introduced to help fund health and social care services in the wake of the coronavirus pandemic. Paul Johnson, the director of the Institute for Fiscal Studies think tank, said the mini budget will be the “biggest tax-cutting fiscal event” in 30 years, referencing Nigel Lawson’s Budget of 1988.

Speaking on Thursday, Mr Kwarteng said: “Taxing our way to prosperity has never worked. To raise living standards for all, we need to be unapologetic about growing our economy.

“Cutting tax is crucial to this – and whether businesses reinvest freed-up cash into new machinery, lower prices on shop floors or increased staff wages, the reversal of the Levy will help them grow, whilst also allowing the British public to keep more of what they earn.”

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  • National Insurance hike scrapped15:44
  • National Insurance hike scrapped

    The national insurance hike introduced by Boris Johnson’s government will be reversed from November 6, Chancellor Kwasi Kwarteng has announced.

    Ahead of his mini-budget on Friday Mr Kwarteng confirmed the change to the 1.25 percentage rise designed to pay for health and social care in the wake of the pandemic. 

    Mr Kwarteng said: “Taxing our way to prosperity has never worked. To raise living standards for all, we need to be unapologetic about growing our economy.

    “Cutting tax is crucial to this – and whether businesses reinvest freed-up cash into new machinery, lower prices on shop floors or increased staff wages, the reversal of the levy will help them grow, whilst also allowing the British public to keep more of what they earn.”

    Good afternoon

    Good afternoon I’m Francesca Edwards, I’ll be bringing you all the latest developments on the mini-budget. Please feel free to get in touch with me as I work if you have a story or tips to share! Your thoughts are always welcome.

    Email: francesca.edwards@reachplc.com

    Twitter: @FrankieLEdwards

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