Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Second major mini-budget U-turn as Truss announces government will raise corporation tax

by October 14, 2022
October 14, 2022
Second major mini-budget U-turn as Truss announces government will raise corporation tax

The government will raise corporation tax despite promising not to do so in the mini-budget.

Kwasi Kwarteng, who was today sacked as chancellor, promised in the mini-budget last month to keep corporation tax at 19% instead of increasing it to 25% as planned in April.

Liz Truss confirmed her government’s change of direction at a news conference hours after dismissing Mr Kwarteng.

She said the change would raise £18bn for the public purse.

It is the second major tax cut U-turn in three weeks after the government confirmed it would not go ahead with a plan to scrap the 45p top rate of income tax promised in the mini-budget on 23 September.

Mr Kwarteng cut short his trip to the International Monetary Fund in Washington DC and returned to the UK on Friday morning as expectations of another significant U-turn mounted.

But his early return was not enough to save his job and less than two hours after he landed, he had been sacked.

The past three weeks have been marked by economic turmoil, with the pound reaching a record low against the dollar, interest rates soaring and the Bank of England having to intervene.

The reversal follows warnings from the Institute for Fiscal Studies, a leading economics think tank, that Mr Kwarteng’s £45bn package of unfunded tax cuts had left a £62bn black hole in the public finances.

The government has come under increasing pressure from senior Tories to take steps to reverse aspects of the mini-budget to allay market concerns.

Speaking about the u-turn Fiona Graham, Director of External Affairs and Policy at the Institute for Family Business, representing thousands of family businesses across the UK, said: “Over and over again we hear family businesses say what they need is economic policy that allows them to plan and invest for the future.  After years of disruption, and with business still facing global challenges, we need the Government to recognise the damage that instability causes to business and urgently seek to rebuild confidence.  This is the key to delivering growth and prosperity for generations to come.

“When Rishi Sunak announced the Corporation Tax rise in the Spring Statement, this was part of an overhaul that would see higher headline rates alongside a reformed business investment landscape.  If the Government are now going ahead with that Corporation Tax increase, we need to see detail on how long term business investment will be supported, and the outcome of the consultation on reforming the UK capital allowance regime.”

Tony Danker, CBI Director-General added his thoughts to the announcement by Liz Truss, saying: “The instability of recent weeks has paused investment and hit livelihoods, so it was important today that the Government responded to those market concerns.

“In the weeks to come, government plans will need to continue to restore fiscal credibility to give markets and business confidence to invest.

“Once stability is restored, we must plan for economic growth from 2023. That will be the moment to set out a new long term tax regime that will kickstart business investment and ensure the UK is competitive in a changing world.”

Read more:
Second major mini-budget U-turn as Truss announces government will raise corporation tax

0
FacebookTwitterGoogle +Pinterest
previous post
A Rant for the Ages: Steve Bannon Breaks Down the Devastating Economic News from Thursday – Best Analysis on Biden Economic Crisis (VIDEO)
next post
Truss appoints Jeremy Hunt as chancellor after sacking Kwarteng in bid to steady the economy

You may also like

Chancellor says UK economy has a ‘sprained ankle’

December 5, 2023

Halfords’ profits halve as customers put the brakes...

June 22, 2023

How Engineering Firms Can Balance IT Cost Containment...

March 6, 2024

Mutual fund Fidelity says value of X down...

January 3, 2024

TechTalent to create 150 jobs in West Midlands

October 27, 2022

Prosecutions of tax evasion enablers fall 75% in...

March 31, 2025

Female leaders being overlooked for top fintech jobs,...

April 17, 2023

Mastercard strikes deal with Binance to launch crypto...

August 25, 2022

Meta pays £149m to end lease of London...

September 27, 2023

Starmer sets out new AI action plan to...

January 13, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Chief Justice Roberts sounds alarm on dangerous rhetoric aimed at judges from politicians

      June 29, 2025
    • Britain’s fastest-growing firms revealed for 2025: Dfyne, Nala’s Baby and Hawkstone lead the charge

      June 29, 2025
    • Schumer to force Senate reading of Trump’s entire ‘big, beautiful bill’

      June 28, 2025
    • Rubio condemns Iran’s ‘unacceptable’ threats against IAEA director

      June 28, 2025
    • Key blue state Republican says Senate’s local tax write-off offer is a ‘good deal’

      June 28, 2025
    • Key GOP senator defects on crucial vote, imperiling Trump’s ‘big, beautiful bill’ in narrow majority

      June 28, 2025

    Categories

    • Business (8,330)
    • Investing (2,081)
    • Politics (15,852)
    • Stocks (3,177)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved