Here are the main points of Kwasi Kwarteng’s fiscal statement on the government’s economic plan to drive down inflation and cut taxes to bolster growth.
Energy bills for households have been capped at an average of £2,500 a year for two years, a £1,000 saving at current energy prices.
Bills have also been capped for six months for businesses, charities and public sector organisations such as schools and hospitals from October.
An energy markets financing scheme will allow banks to be funded to provide emergency liquidity to energy traders. The cost of the energy measures will be £60 billion for the six months from October.
The planned rise in corporation tax from 19 per cent to 25 per cent from next April has been scrapped to support business investment. At 19 per cent it is the lowest in the G20. It is an attempt to help to stop Britain from appearing unattractive to businesses that might otherwise set up operations in the European Union or the United States.
The government is aiming to achieve a trend growth rate of 2.5 per cent for the UK economy.
Legislation is to be introduced to accelerate the delivery of around 100 major infrastructure projects, including transport, energy and digital schemes, to reduce unnecessary bureaucracy in the system and help drive growth.
The government is in talks with 38 local and mayoral combined authority areas in England to set up new investment zones. The zones will offer targeted and time-limited tax cuts for businesses in a bid to increase productivity and create jobs. Work will also begin with Scotland, Wales and Northern Ireland to agree zones in these locations.
The annual investment allowance for businesses will be permanently set at its highest level of £1 million from April 1 nest year. This will give 100 per cent tax relief to businesses on their plant and machinery investments up to the level of £1 million.