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.
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.
NYC Mayor Zohran Mamdani gives thoughts on Andy Burnham running for Prime Minister
Emily Sergeant
Mayor of New York City, Zohran Mamdani, has given his thoughts on Andy Burnham’s intention to run for Prime Minister.
In case you missed it, after it was announced last Friday that Andy Burnham had clinched the victory in the crucial Makerfield by-election, winning 24,927 votes (54.8% vote share) and a majority of 9,231, he then went onto announcing his intentions to run for Labour Party leader, and therefore Prime Minister, after Keir Starmer confirmed he would be stepping down.
Greater Manchester‘s next Mayoral Election has also been announced, given that Burnham is now not eligible to stay in the role – with the date set for Thursday 30 July and candidates frequently being announced.
Talk of Burnham’s chances of running the country have been around for months now, but have ramped up considerably over the past week of course in the wake of his by-election win.
It’s fair to say that for much of Andy Burnham’s time as Mayor of Greater Manchester, especially in the wake of the COVID-19 pandemic, he was up there as one the most famous Mayors in the world… but over the past year, he’s arguably had to hand that unofficial title over to Zohran Mamdani, the current Mayor of New York City.
Mamdani is considered to be a democratic socialist, and campaigned for things like progressive, affordability-focused platform, supporting fare-free city buses, universal child care, city-owned grocery stores, a rent freeze on rent-stabilised units, additional affordable housing units, and a $30 minimum wage by 2030.
He has also expressed support for LGBTQ+ rights, comprehensive public safety reform, and tax increases on corporations and those earning above $1 million annually.
Mamdani was elected Mayor of New York City last October, and was officially sworn in on New Year’s Day at the start of this year.
Since then, he has successfully – very successfully, in fact – made a name for himself around the world, and has even managed to deliver on a good chunk of what he set out to do in his campaign, seeing many calls for him to become President one day.
Oh, and he’s also a massive (and very knowledgeable) football fan – an Arsensal fan, to be precise, but football in general really.
Appearing on BBC’s Football Daily podcast this week to talk about his love of the sport as the US currently hosts the 2026 FIFA World Cup, Mamdani was also asked to give his thoughts on Andy Burnham and his upcoming run to be Prime Minister.
“I don’t think anything comes with ease at that kind of a level,” Mamdani started out in response to host Mark Chapman’s question.
“I do think they are very important skills because many people have lost faith in Government, the place they earn that faith back, they decide to trust again, is at the most local level. That’s where they see what it’s like to have a Government that delivers for them.
“And if you’re able to respond to people, whether it’s in Greater Manchester or New York City, it is at the heart of what people are looking for for any kind of politics.
Mamdani then closed out his thoughts by questioning: “I don’t think he’s an Arsenal supporter though?” and when the hosts clarified that Burnham is an Everton fan, Mamdani responded: “Well at least you can respect that someone has suffered.”
He concluded: “No but like, I like it when I meet someone who’s a fan of a team that hasn’t just won and won and won.”
Featured Image – Wikimedia Commons
News
Trendy Ancoats wine bar Blossom Street Social to close after six years
Emily Sergeant
Trendy neighbourhood wine bar Blossom Street Social has announced its closure after nearly seven years serving the Ancoats community.
Blossom Street Social first opened its doors back in 2019, just months before the country – and the res of the world – was plunged into the COVID-19 lockdowns, but despite all the challenges during the early days, this wine bar went on to become a true staple of Ancoats life – hosting events, exhibitions, wine tastings, and everything in between.
But now, the owners have had to make the heartbreaking decision to close, saying they’ve ‘danced our last dance, played our last record, and poured our last glass of wine in Ancoats.’
Announcing the news in a statement to social media this week, Blossom Street Social said: “Blossom Street Social closes its doors after six and a half years at the heart of the Ancoats community.
Blossom Street Social has announced its closure after six years / Credit: The Manc Group
“When we opened in 2019, just months before the world changed forever, we couldn’t possibly have imagined the journey ahead. Through lockdowns, uncertainty and everything that followed, we somehow managed to build something that became far more than a wine bar.
“Wine was always at the heart of what we did, but so were the conversations, the music, the art and the community that grew around it.
“We’ve hosted tastings, exhibitions, launches, celebrations, social sessions and countless memorable nights. We’ve introduced people to wines they’d never tried before, watched friendships form and shared in some truly special moments.
“We’ve watched first dates become engagements, engagements become marriages, and couples return with babies in tow. We’ve celebrated birthdays, anniversaries, new homes and countless milestones alongside you. We’ve shared conversations, laughter, music and moments that mattered from our little corner of Ancoats. We will never forget them.”
The team then went on to thank ‘every customer, artist, DJ, supplier, collaborator and friend’ who became part of their story.
The owners also gave a special thank you to the staff members who stayed ‘to the very end’ and ‘showed up when it was hard’, admitting that they couldn’t have done it without them all.
Danny Jones -
23rd September 2022 
