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| Mini-budget: What is it and how will it affect me? | Mini-budget: What is it and how will it affect me? |
| (32 minutes later) | |
| Chancellor Kwasi Kwarteng will later unveil a mini-budget with National Insurance and corporation tax cuts. | Chancellor Kwasi Kwarteng will later unveil a mini-budget with National Insurance and corporation tax cuts. |
| Details of cuts to other taxes such as stamp duty may also be announced as the government tries to limit the impact of soaring energy bills on households. | Details of cuts to other taxes such as stamp duty may also be announced as the government tries to limit the impact of soaring energy bills on households. |
| Experts expect it to be the biggest tax-cutting event for 34 years. | Experts expect it to be the biggest tax-cutting event for 34 years. |
| Labour said funding these tax cuts by borrowing would leave people paying more for longer. | Labour said funding these tax cuts by borrowing would leave people paying more for longer. |
| However, the government hopes the tax cuts will boost the economy, increase its revenues and prevent a massive increase in the national debt. | However, the government hopes the tax cuts will boost the economy, increase its revenues and prevent a massive increase in the national debt. |
| What could be in the mini-budget? | What could be in the mini-budget? |
| The government has confirmed it will let people keep more of their earnings by cutting National Insurance (NI). | The government has confirmed it will let people keep more of their earnings by cutting National Insurance (NI). |
| Other measures could include: | Other measures could include: |
| scrapping a planned increase in the amount of tax companies pay on their profits | scrapping a planned increase in the amount of tax companies pay on their profits |
| possible cuts to other taxes, including stamp duty which is paid on house purchases | possible cuts to other taxes, including stamp duty which is paid on house purchases |
| ending the cap on bankers' bonuses | ending the cap on bankers' bonuses |
| tightening the rules around universal credit | tightening the rules around universal credit |
| plans to boost economic growth, such as creating low-tax zones around the UK | plans to boost economic growth, such as creating low-tax zones around the UK |
| The announcements will be made by new Chancellor Kwasi Kwarteng, who is in charge of the public finances. | The announcements will be made by new Chancellor Kwasi Kwarteng, who is in charge of the public finances. |
| The tax-cutting plans under consideration could cost at least £30bn. | The tax-cutting plans under consideration could cost at least £30bn. |
| Will there be a stamp duty cut? | Will there be a stamp duty cut? |
| There is speculation that the government may cut stamp duty, a tax paid when people buy a property in England and Northern Ireland. | There is speculation that the government may cut stamp duty, a tax paid when people buy a property in England and Northern Ireland. |
| No tax is paid on transactions up to £125,000, and from there it rises in bands to a maximum of 12% for the portion over £1.5m. It raises around £12bn for the Treasury. | No tax is paid on transactions up to £125,000, and from there it rises in bands to a maximum of 12% for the portion over £1.5m. It raises around £12bn for the Treasury. |
| The government is thought to be considering a cut, to help first-time buyers and house moves, which would boost economic growth, according to the Times newspaper. | The government is thought to be considering a cut, to help first-time buyers and house moves, which would boost economic growth, according to the Times newspaper. |
| How will National Insurance change? | How will National Insurance change? |
| The government has confirmed it will reverse a recent rise in National Insurance (NI) from 6 November. NI is a tax workers pay on their earnings. | The government has confirmed it will reverse a recent rise in National Insurance (NI) from 6 November. NI is a tax workers pay on their earnings. |
| Since 6 April, workers and employers have paid an extra 1.25p in the pound, to help fund the NHS and social care. | Since 6 April, workers and employers have paid an extra 1.25p in the pound, to help fund the NHS and social care. |
| NI was set to return to its old rate from April 2023 - to be replaced by a new Health and Social Care Levy at a rate of 1.25%. The levy will now not be introduced. | NI was set to return to its old rate from April 2023 - to be replaced by a new Health and Social Care Levy at a rate of 1.25%. The levy will now not be introduced. |
| The NHS will still get the funding it was promised, but government is now expected to borrow the money rather than raise it from tax. | The NHS will still get the funding it was promised, but government is now expected to borrow the money rather than raise it from tax. |
| High earners will benefit most, as they pay the most NI. An NI cut won't help pensioners or those on very low income or benefits because they don't pay the tax. | |
| What is national insurance? | What is national insurance? |
| Which other announcements are expected? | Which other announcements are expected? |
| Corporation tax | Corporation tax |
| This tax is based on the annual profits that a company makes. | This tax is based on the annual profits that a company makes. |
| It was due to increase from 19% to 25% in April 2023, under a plan announced by the previous PM, Boris Johnson. | It was due to increase from 19% to 25% in April 2023, under a plan announced by the previous PM, Boris Johnson. |
| However, Ms Truss is set to cancel the rise. | However, Ms Truss is set to cancel the rise. |
| Does cutting corporation tax always raise more money? | Does cutting corporation tax always raise more money? |
| Green levies | Green levies |
| These charges fund schemes like insulation and renewable energy. | These charges fund schemes like insulation and renewable energy. |
| The prime minister has promised to temporarily scrap the levies, saving households about £150 each. | The prime minister has promised to temporarily scrap the levies, saving households about £150 each. |
| Income tax | Income tax |
| A possible cut to the main tax on people's earnings could also be on the cards. | A possible cut to the main tax on people's earnings could also be on the cards. |
| Right now, people in England, Wales and Northern Ireland pay 20% on any annual earning between £12,571 to £50,270. (Rates in Scotland are different). | Right now, people in England, Wales and Northern Ireland pay 20% on any annual earning between £12,571 to £50,270. (Rates in Scotland are different). |
| Universal credit | Universal credit |
| Mr Kwarteng is expected to announce a welfare shake-up to "get Britain working again". | Mr Kwarteng is expected to announce a welfare shake-up to "get Britain working again". |
| This is set to include changes to the rules for claiming universal credit, a benefit payment paid to working-age people. | This is set to include changes to the rules for claiming universal credit, a benefit payment paid to working-age people. |
| Chancellor set to tighten Universal Credit rules | Chancellor set to tighten Universal Credit rules |
| What is universal credit? | What is universal credit? |
| How does the government plan to boost growth? | How does the government plan to boost growth? |
| The government believes its planned tax cuts will help the economy grow more quickly. | The government believes its planned tax cuts will help the economy grow more quickly. |
| It may announce the creation of "special investment zones". Selected locations around the UK would be allowed to relax planning rules and reduce business taxes to encourage investment. | It may announce the creation of "special investment zones". Selected locations around the UK would be allowed to relax planning rules and reduce business taxes to encourage investment. |
| The mini-budget could also see an end to the cap on bankers' bonuses. This was introduced across the EU in 2014 (when the UK was still a member) following the global financial crisis. Under the current rules, a banker's bonus cannot be higher than their annual salary - unless shareholders agree. | The mini-budget could also see an end to the cap on bankers' bonuses. This was introduced across the EU in 2014 (when the UK was still a member) following the global financial crisis. Under the current rules, a banker's bonus cannot be higher than their annual salary - unless shareholders agree. |
| When asked if she would be happy to see bankers getting bigger bonuses, Ms Truss said she wanted to see a growing economy. | When asked if she would be happy to see bankers getting bigger bonuses, Ms Truss said she wanted to see a growing economy. |
| Truss defends plan to boost bankers’ bonuses | Truss defends plan to boost bankers’ bonuses |
| Will Liz Truss's economic plans make us richer? | Will Liz Truss's economic plans make us richer? |
| Can the UK afford to tax less and borrow more? | Can the UK afford to tax less and borrow more? |
| Critics argue immediate tax cuts will require the government to borrow more for years to come. | Critics argue immediate tax cuts will require the government to borrow more for years to come. |
| The money, plus interest, will eventually need to be paid back by taxpayers. | The money, plus interest, will eventually need to be paid back by taxpayers. |
| However, Ms Truss argues faster growth will bring in more money in tax, which will cover the cost of the amount borrowed. | However, Ms Truss argues faster growth will bring in more money in tax, which will cover the cost of the amount borrowed. |
| Warning tax cut 'gamble' will push debt too high | Warning tax cut 'gamble' will push debt too high |
| Where does the government borrow billions from? | Where does the government borrow billions from? |
| Why is it being called a mini-budget? | Why is it being called a mini-budget? |
| Major decisions about tax and spending are normally made twice a year - in an autumn Budget Statement and a Spring Statement. | Major decisions about tax and spending are normally made twice a year - in an autumn Budget Statement and a Spring Statement. |
| Today's announcements are on that kind of scale, covering changes to policies worth billions of pounds, but the new prime minister and chancellor don't want to wait for a full Budget to implement their new economic strategy. | |
| The government has described it as a "fiscal event", and the media has dubbed it a "mini-budget". | |
| The major difference is that it won't be accompanied by an official analysis of its impact on the economy. | |
| That is usually provided by the Office for Budget Responsibility (OBR) - the body which gives independent advice to the government - but the government is refusing to publish the OBR's assessment alongside the mini-budget. | |
| The Treasury said it "remain[s] committed to maintaining the usual two forecasts in this fiscal year, as is required". | The Treasury said it "remain[s] committed to maintaining the usual two forecasts in this fiscal year, as is required". |
| An update on the timetable for the next OBR forecast will come during Friday's statement. | An update on the timetable for the next OBR forecast will come during Friday's statement. |
| A full-scale Budget is expected later this year, but no date has been set. | A full-scale Budget is expected later this year, but no date has been set. |
| Treasury refuses to publish UK economic forecast | Treasury refuses to publish UK economic forecast |
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