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.
Strangeways declared ‘threat to national security’ following drone deliveries of drugs, weapons and more
Danny Jones
A recent trend at HMP Manchester has been declared a “threat to national security” after it was learned that drones have been regularly delivering drugs, weapons and more into the facility formerly known as Strangewaysalong with other UK prisons.
It’s said there were roughly 220 drone sightings over the past year or so – more than any other prison in the country – and issues around contraband, violence, hygiene and more have been on the increase ever since. HMP Long Lartin in Worcestershire was found to be similarly neglected.
A rife drug and rat problem was found following a surprise autumn inspection between September and October; it is now evident that the chronic issues have been exacerbated by a major security breach as His Majesty’s Chief Inspector of Prisons, Charlie Taylor, says police have “ceded airspace” over facilities.
The most recent report on conditions at HMP Manchester and Long Lartin was published on Tuesday, 14 January and, in short, it insists that huge investment is needed in order to curb the crisis.
Credit: HM Inspectorate of Prisons
Drones, corruption and a lack of investment have seen Strangeways maintain its reputation
A top-line assessment of Strangeways found that many of the sticking points came down not only to the advent of drones delivering items such as phones, drugs, weapons and other “large payloads” weighing up to as much as 7kg, but merely “poor physical security” and concerns regarding corruption.
Most notably, high-risk prisoners who Taylor described as “extremely dangerous” have been burning holes in cell windows in order to pick up drone deliveries. The ease with which these exchanges are able to take place comes down to what he simply calls “slow action”.
There has been a damning failure to spot, repair and/or replace these panels, as well as the torn netting over exercise yards, meaning that drone operators have an easier task when dropping their packages into the 158-year-old penitentiary.
According to the report, “a staggering 39% of prisoners had tested positive in mandatory drug tests at Manchester” (50% at Long Lartin) and a simple survey found that drugs and alcohol were “easy” to acquire inside Strangeways.
In addition to the rodent infestation, general hygiene looks to have plummeted to new lows in recent times too, with “widespread dirt, damp and litter” as well as vandalism in several areas. Inmates have also been tearing up mattresses to insulate windows from the cold.
Numbers relating to assault, self-harm, suicide and more have also risen since the last major inspection in 2021. By all accounts, it remains one of Britain’s most dangerous prisons for a whole host of reasons.
There has also been a significant drop-off when it comes to socialisation and rehabilitation efforts, as the work day, learning and general activities look to have dwindled too.
Taylor signed off by writing: “The safety of staff, prisoners and ultimately that of the public, is seriously compromised by the failure to tackle what has become a threat to national security.
“The prison service, the police and other security services must urgently confront organised gang activity and reduce the supply of drugs and other illicit items which so clearly undermine every aspect of prison life.” To put it simply, he says the situation is “highly alarming.”
It may not make for pleasant reading, but if you want a clearer picture of the current conditions inside Strangeways prison or to learn more about the growing advent of smuggling drones, you can read the extensive 67-page report in full HERE.
Broken cell windowDamage and dirtThe state of a kitchenette (Credit: HMIP)
Featured Images — Robert Wade (via Flickr)/HMIP (HM Inspectorate of Prisons)
News
Murder investigation launched after man in his 50s found dead in Little Hulton
Emily Sergeant
A murder investigation has been launched after the body of a man in his 50s was found in Little Hulton this past weekend.
Shortly before 7:30am on Sunday 12 January, Greater Manchester Police (GMP) was called to an address on Hope Hey Lane, in the Little Hulton area of Salford, following reports of concern for the welfare of a man.
Once emergency services arrived on the scene, the body of a man in his 50s was sadly found dead.
According to GMP, following a post mortem taking place, officers believe the man’s injuries are “consistent with an assault”, and because of this, detectives have subsequently launched a murder investigation.
#ARREST | A murder investigation has been launched after a man was found deceased in Little Hulton yesterday.
A woman in her 40s has been arrested on suspicion of murder.
There will be an increase in police around the area while we investigate.
With the investigation ongoing, a woman in her 40s has already been arrested on suspicion of murder, and she remains in police custody for questioning.
Addressing the incident and speaking on the murder investigation as it progresses, Detective Chief Inspector Neil Higginson, from GMP’s Major Incident Team, said: “Sadly, following the discovery of a body at a property in Little Hulton, we have now launched a murder investigation, and we have a team of detectives working around the clock to understand the circumstances.
“We do not believe there to be a threat to the wider public, but you will likely see an increased presence of police in your area whilst we conduct further enquiries.
Hope Hey Lane in Little Hulton, where the incident happened / Credit: Google Maps
“If you have any information which may assist our investigation, or any dashcam, CCTV, or doorbell footage from the area in the lats 24 hours, then please get in touch with us. No matter how small the information may seem, it could be crucial to our investigation.”
Can you help? Any information can be shared by calling police on 101 quoting log 650 of 12/01/25, or using the LiveChat function online at www.gmp.police.uk.
Danny Jones -
23rd September 2022 
