The Chancellor of the Exchequer, Kwasi Kwarteng, has delivered his 2022 mini-budget in an attempt to address concerns surrounding the ongoing cost of living crisis.
While significant tax cuts were already predicted ahead of the crucial economic update, many people across the country may have been surprised by the sheer extent of measures announced by the chancellor across the board.
Energy
Addressing the subjects on everyone’s mind early on, Kwarteng stated that the annual price of energy for UK households will now be limited to £2,500, resulting in savings of around £1,000 against the projected figures following the most recent energy cap.
He also confirmed that the £400 energy discount is still in place, with the most vulnerable homes receiving even more in government support. Some are less than convinced that any real ‘savings’ will be made.
Kwarteng says a typical energy bill of 2,500 this year is a SAVING of £1,000.
Earlier this week, the government announced that they would be halving energy bills for businesses over the next six months. Today he confirmed that a relief scheme will be put in place, as well as an “energy market finance scheme” which will offer liquidity to traders.
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Similar relief will be afforded to schools and charities.
Lending and inflation
The hope is that this overall energy plan will reduce inflation, which currently sits at 9.9% based on August’s figures, to 5% and see the trending rate of annual financial growth to 2.5%.
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Not only does the government believes this will lower the wider cost of living pressures but also free up finances to help better fund public services.
The overall energy relief package is said to be costing approximately £60 billion, meaning a significant amount will have to be borrowed from the Bank of England.
Bankers’ bonuses cap and corporation tax hike scrapped
On the subject of banks, one of the most controversial parts of the Kwasi Kwarteng’s update was the announcement that the cap on bankers’ bonuses will be scrapped entirely, arguing that previous measures only led to higher wages and people paying tax in other countries outside of the UK.
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Next year’s scheduled corporation tax increase from 19% to 25% is also going to be scrapped, the rationale being that “low tax encourages investment” both domestically and from overseas.
Once again, people are less than impressed that the nation’s highest-earners appear to be the ones benefiting the most from government policy.
This is a Bankers’ Budget:
– Scrapping the cap on bonuses – Slashing tax for the top 1% of earners – Cutting tax on big businesses' profits
When millions urgently need help with the cost-of-living crisis, the Tories are helping out their super-rich mates.#EnoughIsEnough
The chancellor also said that the government are committed to removing further enterprise barriers caused by EU regulation, hoping to streamline “planning restrictions” across childcare, immigration, agricultural productivity, and digital infrastructure.
He sighted energy, telecoms and travel as key problem areas hamstrung by red tape.
However, he conversely criticised the ongoing strike action across the country and said that they plan to imitate other countries by introducing legislation to ensure minimum level service resumes.
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Tax cuts
Elsewhere, businesses in nearly 40 different ‘designated zones’ have been promised tax cuts for the next 10 years and no stamp duty on new premises. Speaking of which, as of today, no payment will be required on the first £250,000 of a property’s value, with first-time buyers paying zero on the first £425,000.
In fact, it looks as though the overall tax system is set to be reviewed once again. Not only are previous corporation tax and stamp duty plans being scrapped but income tax, alcohol duty and more are all being reexamined as part of the not-so mini-budget.
Alcohol duty is set to be frozen in February, meaning that Brits can expect to save around 7p per pint, 38p per bottle of wine and £1.35 on spirits. VAT-free shopping is also due to be introduced for overseas visitors, with aim of increasing revenue from tourism.
Kwarteng also confirmed that the basic rate of income tax will be cut by 1p to 19p from April 2023, with the 45p tax rate for those earning over £150,000 will be abolished from the same time next year.
This is said to be the biggest series of tax cuts in 50 years.
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£45 billion of tax cuts. This is biggest tax cutting event since 1972. Barber's "dash for growth" then ended in disaster. That Budget is now known as the worst of modern times. Genuinely, I hope this one works very much better.
Despite the ‘real’ living wage being increased by 10% in an attempt to try and curb rising costs in almost every other walk of life, it goes without saying that the UK faces an extremely difficult period ahead as energy costs continue to rise, post-Brexit prices keep rising and we approach the ever expensive winter months.
The shadow chancellor Rachel Reeves told the Financial Times that regardless of the measures announced today, both the mini-budget and Liz Truss’ appointment as Prime Minister represents “another zigzag on a path of policy failure” rather than any real sign of change.
Government announces homebuying overhaul to fix country’s ‘broken’ housing system
Emily Sergeant
The Government has announced what it’s calling the biggest shakeup to the homebuying system in this country’s history.
In a bid to ‘rewire a chaotic system which has become a barrier to homeownership for thousands nationwide, the Government has today (Monday 6 October) unveiled proposals that it says will speed up the long-drawn out and costly process of buying a home by four weeks.
The Housing Secretary says this will not only save people money, but unnecessary stress too.
The proposed new plans would see sellers and estate agents required to provide buyers with ‘vital’ information about a property upfront – including the condition of the home, leasehold costs, and chains of people waiting to move.
It’s hoped this will help end any last-minute chain collapses and ultimately give greater confidence to first-time buyers when they’re making one of life’s most important decisions.
The Government has announced plans to fix the country’s ‘broken’ housing system / Credit: Benjamin Elliott (via Unsplash)
Binding contracts could also be introduced to stop people walking away from agreements after buyers painstakingly spend months in negotiations to hopefully halve the number of failed transactions.
The new reforms are also proposing that prospective buyers are provided with side-by-side information on estate agents and conveyancers, including their track record and expertise, alongside new mandatory qualifications and Code of Practice to drive up standards and work to rebuild trust in the industry.
Prime Minister Keir Starmer took to Twitter this morning to address the proposed new homebuying overhaul, commenting: “I promised that my Government would fix the broken housing system.
“Buying or selling a home will be faster, unlocking the dream of homeownership and allowing hardworking people to focus on the next chapter of their lives. That’s national renewal.”
I promised that my government would fix the broken housing system.
Buying or selling a home will be faster, unlocking the dream of homeownership and allowing hardworking people to focus on the next chapter of their lives.
“Through our Plan for Change, we are putting more money back into working people’s pockets and making a simple dream a simple reality.”
Featured Image – James Feaver (via Unsplash)
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English rugby legend Lewis Moody reveals MND diagnosis
Danny Jones
Much-loved English rugby legend Lewis Moody has revealed his heartbreaking MND (motor neuron disease) diagnosis.
The Leicester Tigers and Bath icon, who was captain of the Rugby World Cup-winning England squad back in 2003, unfortunately announced to the world that he is now suffering from MND, also known as ALS (Amyotrophic Lateral Sclerosis).
Moody, 47, is just the latest well-known rugby player to have developed the progressive neurological disorder, with both former players and others being forced to retire due to the condition.
The Ascot-born rugby union veteran has admitted that the news has come as a ‘sudden shock’ to him and his family, but has been left moved by the overwhelming wave of positivity he has received since making the health update public.
We are deeply saddened to hear the news of Lewis Moody's MND diagnosis and join the entire rugby community in getting behind Lewis and his family at this extremely difficult time ❤️ pic.twitter.com/46doNRQFvq
Sharing a lengthy message online, Moody wrote: “I’m writing to share some tough news. I have recently been diagnosed with ALS, also known as Motor Neurone Disease (MND). This has been incredibly hard to process and a huge shock to me and my family.
“I feel fit and well in myself, and I’m focused on staying positive, living life and dealing with the changes / will experience as they come.
“I am being well supported by my family, friends and medical professionals, and I’m truly grateful to those who, in their time, helped progress research to support others, like me, living with this disease.”
Notable ex-pros who have sadly passed away from the disease in recent years include Doddie Weir and, of course, Rob Burrow MBE.
There is currently no known cure for MND at present, but as Burrow’s best mate and inspirational teammate, Kevin Sinfield has famously, the belief is that this is because it remains “underfunded” and a breakthrough could still be found.
Speaking to BBC Sport with his long-term partner on Monday, 6 October, ‘Mad Dog Moody’ gave a very open and honest interview about the last few weeks, going from noticing some weakness in his shoulder at the gym to having now been given the tragic diagnosis.
Lewis’ statement continues: “Since retiring from the sport I love, and alongside my wife Annie, I’ve been able to dedicate much of the past 12 years to fundraising for The Lewis Moody Foundation in support of those affected by brain tumours.
“My plan is to continue with this, but to also create an opportunity to support a charity closer to my current situation. I would be so grateful for your help with this and look forward to sharing more, once l am clear on what this looks like.
“For now, please know I feel your love and support; all l ask is that I am given some space to navigate this with my wife and sons, and those closest to us – but without doubt, I will continue to embrace life and grasp opportunities in the same way I always have.
Sharing a post of their own on social media this morning, the Red Roses wrote: “Everyone at England Rugby is saddened to learn that former captain Lewis Moody has been diagnosed with Motor Neurone Disease (MND).
“All of our thoughts are with Lewis, his family and friends as they come to terms with this diagnosis. We will be offering both practical and emotional support, and know the entire rugby community will stand with them at this incredibly difficult time.
“We encourage people to show their support through the fundraising initiatives now being set up and available through GoFundMe.”
Sending our strength and support to Lewis Moody, as well as his family, friends and fans; you can donate to his fundraiser down below.
Danny Jones -
23rd September 2022 
