From NI to stamp duty: what is left of Kwasi Kwarteng’s mini-budget?
Kwasi Kwarteng last month unveiled what he described as the “biggest package in generations” of tax cuts during a so-called mini budget designed to boost economic growth.
But the government was on the ropes within hours, precipitating a number of humiliating U-turns. With Kwarteng no longer chancellor, here is where things stand on key points in the package that have come under attack (with the costs to the taxpayer based on Treasury estimates).
Cost: £2bn.Status: Abandoned in a humiliating U-turn during the Conservative party conference, after a growing Tory revolt over the policy and a turbulent reaction from markets. “We get it, and we have listened,” tweeted Kwarteng.The issue: The sudden change of course followed a realisation within Downing Street that the measure might be voted down in parliament amid vocal opposition by many Conservative MPs. Senior figures had also warned that the party could not sell to the electorate what would, in effect, be a tax cut for the rich.
Cost: £2bn.Status: In a humiliating U-turn on what had been the flagship policy in her leadership campaign, Truss told a No 10 press conference on Friday that the corporation rise would go ahead after all. Sources this week had told the Guardian that a potential climbdown could involve putting it up by just one or two percentage points, rather than the full 6%, but events appear to have overtaken Downing Street again.The issue: Tax take would be significantly reduced, raising concerns in financial markets about how the government would fund spending.
Cost: £5bn.Status: A U-turn has appeared unlikely, given that the measure would not have cost the taxpayer. If Truss is seeking to salvage something ideological from the mini-budget, then it may be this.Th
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