Good morning, it's just Paul here today, with it being a Friday (usually slow for news, so I can catch up with backlog items of interest here). Today's report is now finished.

Mini Budget

Tax cuts are expected. I'll be following the announcement c.09:30 and am planning on updating this section asap afterwards with the key points. Here it is - 

Mini Budget - Kwasi Kwarteng speech to House of Commons today

Here are my notes, hopefully I caught the main points correctly.

Energy costs - reiterated household & business support measures already announced.

Erratic wholesale prices - Govt will give 100% guarantees to emergency bank loans for suppliers.

Overall measures on energy will reduce peak inflation by 5%. Plus cheaper costs for index-linked debt.

Bank of England - is taking action to control inflation, “independence is sacrosanct”.

Growth - is too low. Tax burden too high. Need to break this cycle.

Aiming for 2.5% p.a. trend growth in GDP, via tax cuts & supply side reforms.

Prudent public finances (!) UK national debt is 2nd lowest as % GDP in the G7. Plan to reduce as % of GDP in medium & long term.

Costings will be published today. Energy plan costs are particularly uncertain, will cost £60bn in 6 months from Oct 2022, and then come down. Price of inaction would be far greater.

Infrastructure - too many barriers to enterprise, e.g. planning system, childcare, immigration. Planning is too slow & fragmented on major projects. Need to unpick complex laws. List of priority projects to be published today.

Houses - more new houses needed. Reforms, including release of surplus Govt land.

Unemployment - lowest for c.50 years. Need to get more people off benefits & into work.

Strikes - other countries have minimum service levels, we’ll introduce the same. Pay offers must be put to union members in future.

Pension funds - reforms to boost investment in infrastructure.

Cap on bankers’ bonuses - will be repealed. Hasn’t worked - either repelled high earners to overseas, or raised base salaries vs bonuses.

Financial sector - more regulatory reforms to come in autumn.

Levelling up - new investment zones will be introduced, with big tax incentives - e.g. no business rates, 10 year tax relief on investment, no NIC on first £50k per employee. Mentioned possible locations including Teeside, South West, and Norfolk (??).

Corporation tax -…

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