Mini budget: Kwasi Kwarteng announces cancellation of corporation tax rise on business …
Parliament TV

The Chancellor has announced the Government’s plans for new low tax “investment zones”.

Kwasi Kwarteng said: “To support growth right across the country, we need to go further, with targeted action in local areas.

“So, today, I can announce the creation of new investment zones. We will liberalise planning rules in specified agreed sites, releasing land and accelerating development.

“We will cut taxes. For businesses in designated tax sites, for 10 years, there will be: Accelerated tax reliefs for structures and buildings. And 100 per cent tax relief on qualifying investments in plant and machinery.”

He added the Government was in early discussions with regions across England to establish the new zones, as well as the devolved administrations in Scotland, Wales and Northern Ireland.

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“If we really want to level up, we have to unleash the power of the private sector,” Mr Kwarteng added.Kwarteng confirmed that the planned rise in corporation tax would be cancelled.

The Chancellor told the Commons: “The interests of businesses are not separate from the interest of individuals and families. In fact, it is businesses that employ most people in this country. It is businesses that invest in the products and services we rely on.”

He added: “I can therefore confirm that next year’s planned increase in corporation tax will be cancelled. The UK’s corporate tax rate will not rise to 25% – it will remain at 19%.

“We will have the lowest rate of corporation tax in the G20. This will plough almost £19 billion a year back into the economy. That’s £19 billion for businesses to reinvest, create jobs, raise wages, or pay the dividends that support our pensions.”

As you can imagine reaction to Kwarteng's announcement hasn't been universally well received with many people accusing it of massively favouring the most wealthy people in the UK society.

In other good news, the pound has absolutely plummeted.

What a time to be alive...

Additional reporting from PA.

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