Mini budget: Kwasi Kwarteng announces cancellation of corporation tax rise on business …
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.
“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.
\u201cGovt attacking people on benefits at time of acute poverty & foodbanks, legislating against working people who stick up for themselves thro a union, whilst green-lighting grotesque banker bonuses & corporation tax increase scrapped\nThis #MiniBudget is nasty, cruel & regressive\u201d
\u201cToday\u2019s mini budget shows the Government\u2019s priorities.\n\nCut taxes for the rich, more bonuses for bankers, cut stamp duty for property speculators, corporation tax lowered and energy company profits secured with billions of tax payers\u2019 pounds.\n\nTrickle down economics do not work.\u201d
— Maurice Mcleod (he/him) (@Maurice Mcleod (he/him))
\u201cBREAKING \ud83d\udea8 | The government is CUTTING the tax paid by those who earn more than \u00a3150,000. \n\nThat means mega earners will pay the same rate as those on \u00a350,000.\n\nTax cuts for the rich. Attacks on working people.\u201d
— Trades Union Congress (@Trades Union Congress)
\u201cSpeechless.\n\nNo VAT or Biz Rate support for Hospitality.\n\nCorporation tax cuts are completely useless if businesses aren\u2019t turning a profit, or worse, closed. \n\nThese announcements will now mean last orders for thousands of Hospitality businesses meaning mass redundancies.\u201d
\u201cKwasi Kwarteng\u2019s budget in brief:\n\nRich: \n- higher rate of income tax cut from 45% to 40%\n- easier to buy second home\n- reduction in corporation tax\n- no limit on bankers\u2019 bonuses\n\nPoor:\n- you get to pay for all the above\u201d
\u201cThat really was quite a staggering statement from a Conservative party government \n\nHuge new borrowing at the same time as cutting taxes. \n\nIt's all aimed at growing the economy. I really hope it works. I really worry what happens if it doesn't.\n\n#MiniBudget\u201d
\u201cBudget massively benefits the rich. \n\n- Millionaires pay same income tax rate as those on \u00a350k. \n\n- Bankers can earn unlimited bonuses. \n\n- Big business owners face lower corporation tax than expected. \n\nBut govt is happy to lean into this - determined it\u2019ll boost growth for all.\u201d