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.
Parklife pumps more than £155,000 back into Greater Manchester community projects
Danny Jones
Parklife is once again proving why it’s such an important event for Greater Manchester, not just in terms of music and culture, but through the money it pumps back into the community through grassroots projects.
The annual music festival at Heaton Park raises significant funds for local initiatives with each edition via the official Parklife Community Fund.
Partnered with the Manchester, Bury, and Rochdale councils, the finances generated through those who attend not only Parklife but also other concerts held at the outdoor venue, such as the recent Oasis shows, help local groups that make a positive, tangible difference in their neighbourhoods.
This year alone, the total includes £55,000 raised from guest list donations by festival attendees, as well as a further £100k generated from other events held in Heaton Park, making 2025 one of, if not the biggest, years for donations to date.
Distributed by the City Council and the local authorities in Bury and Rochdale throughout the respective boroughs, the aim is not only to give back but to enhance local life, through everything from important youth programmes to community wellbeing and improvement schemes.
Launched back in 2017, the festival fund is approaching nearly half a million pounds raised on behalf of local causes, strengthening its connection with the nearby communities surrounding its host site.
The region’s vast and stunning green space is a huge tourist attraction in itself, meaning literal grassroots causes like the woodland management group are vital to maintaining that beauty and status.
Other projects include an astronomy group, as well as fitness drives like ‘RockFit’ (seen above), which now meets at Heaton Park regularly to promote exercise for both physical and mental health.
It’s also worth noting that the fund covers surrounding areas like Higher Blackley and Crumpsall; Sedgley, Holyrood, St Mary’s and even South Middleton.
You can see more examples of the charitable community work in action down below.
Credit: Supplied
Sam Kandel, founder of Parklife Festival, said of the fund: “Parklife is proud to call Heaton Park home, and it’s really important to us that the festival has a lasting, positive impact on the local community.
“The Community Fund is our way of saying thank you to residents and supporting the brilliant grassroots projects that make Manchester, Bury, and Rochdale such special places to live.”
Councillor Lee-Ann Igbon (Exec Member for Vibrant Neighbourhoods) added: “Parklife brings people from Manchester and beyond to our wonderful Heaton Park, and it is right that the communities living close by benefit from the event through reinvestment in local initiatives that will leave a legacy for all.
“The Parklife community fund means that local communities choose what’s important to them and they have the opportunity to bid for funds to invest in projects that enhance local amenities, strengthen community connections and wellbeing for the benefit of everyone.”
Those looking to benefit from the fund can apply online now and you can find out more information by contacting the relevant councils’ neighbourhood pages.
Work finally begins on Greater Manchester’s new ‘innovation hub’ in Atom Valley creating 20,000 jobs
Emily Sergeant
It’s official… work has finally begun on the first major development in Atom Valley.
If you’re not familiar with Atom Valley, this new project is set to be a unique innovation ‘cluster’ – plans of which were approved by local leaders all the way back in summer 2022 – with the potential to create up to 20,000 new jobs in Greater Manchester once it’s complete.
Greater Manchester wants Atom Valley to become a ‘springboard’ for new and emerging companies and researchers, giving them the support and the opportunities they need to trial and commercialise their innovations right here in our region.
The new development which ground has now been broken on is a Sustainable Materials and Manufacturing Centre (SMMC) – which is set to become a thriving hub of innovation.
Today is a big day for GM.
We break ground on a new research centre at Atom Valley – our emerging world-class cluster in advanced materials and manufacturing.
Here, start-ups and emerging companies will be able to pioneer new technologies and scale up their ambitions, all while creating jobs and driving growth across the region in the process.
Located next to the Kingsway Business Park in Rochdale, it will offer 30,000 sq ft of new laboratory space, workshops, and design studios, as well as a lecture theatre, meeting rooms, office space, and flexible workspace for start-ups.
With the ‘right’ support, local leaders say the SMMC will also be a vital link between Atom Valley and the Oxford Road Corridor, ultimately forging a pathway for new companies and projects to expand from the city centre out into the wider city region.
Work has finally begun on Greater Manchester’s new ‘innovation hub’ in Atom Valley / Credit: DLA Architecture
Mayor Andy Burnham says this is the ‘most ambitious development’ in Atom Valley so far
“It will help unleash the untapped potential of the world-leading research taking place across our city region, bridging that crucial gap from invention to bringing those new innovations to the market,” he explained. “And it will create a new hi-tech corridor from the out to the north of Greater Manchester, creating jobs and new opportunities for start-ups to scale up their ambitions.
“This is integrated, well-connected development in action, and a clear sign of our mission to spread the benefits of growth right across our city region.”
Danny Jones -
23rd September 2022 
