CAPITAL RESCHEDULES CAR FREE DAY EVENT TO SUNDAY 2nd OCTOBER
Edinburgh is set to join over 2,000 cities across the globe in celebrating World Car Free Day, a free, community focused event being organised by Crexcell, and supported by The City of Edinburgh Council.
As a mark of respect following the death of Queen Elizabeth II, Edinburgh’s Car Free Day has been postponed (from the official date of Thursday 22nd September), and will now be staged on Waverley Bridge, on Sunday 2nd October 2022, between 11:00 to 19:00.
Waverley Bridge, in the city centre, will be transformed into an inclusive community hub of information, inspiration and activity encouraging people to consider alternatives to car travel in Edinburgh. The city’s public transport operators, bike and environmental campaigners, active travel and public safety organisations are all set to take part.
The City of Edinburgh Council has set a target to reduce distances that Edinburgh residents travel by car by 30% over the next decade, as well as achieving Net Zero status by 2030.
With transport being one of the biggest carbon emission contributors, Edinburgh’s World Car Free Day event will encourage people to consider more sustainable alternative transport for their everyday journeys.
It will raise awareness of the more sustainable modes of transport available across the city, promote the health and wellbeing benefits of active travel, and offer the essential information and support people need to commit to long term change.
Among those already signed up to attend are Lothian Buses and Edinburgh Trams, who play a significant role in reducing reliance on more carbon intense forms of transport by providing a quick, convenient and reliable alternative to driving.
Members of the team will be at Waverley Bridge to chat about their services within the city, including Park and Ride options, and the vast opportunities for – and the benefits of using – public transport.
Police Scotland will offer support to cyclists and walkers with cycle security advice, personal safety, bike marking and general crime prevention when moving around the city.
The Bike Station, which inspires new cyclists by selling reliable and affordable upcycled bikes, will be on hand to offer bike safety checks and bikes to try out. The team will also have information on safe cycle routes throughout the city, and bike to work and cycle friendly employer schemes.
There will also be a hosted reception and information point, additional bike parking, a wellbeing area with health and fitness demonstrations and classes, and a chill out zone. Local singers and bands including Sara Forshaw, Folk Drama, and The Wispz will provide the musical entertainment throughout the day.
World Car Free Day is a worldwide initiative to encourage motorists to reset how they think about travel and use more sustainable transport.
It also promotes improvement of public transport, cycling and walking, and the development of healthier, greener neighbourhoods where jobs are closer to home and where shopping is within a short walk, wheel or cycle from home.
Councillor Scott Arthur, Transport and Environment Convener for The City of Edinburgh Council, said: “Choosing more sustainable modes of transport, like bus, tram, bike or walking over the car not only benefits the world around us, but can have a really positive impact on our health and quality of life.
“Car Free Day gives us the chance to really focus on these benefits, and to help people consider how they might try alternative ways to travel.
“The Council has set some ambitious goals to reduce car kms travelled by 30% in the next decade, as well as delivering on our 20-minute neighbourhood vision to enable a net zero Edinburgh where everyone can live well locally.
“We need to rethink the way we move around the city to meet these targets. I would encourage people to come along on 2nd October to find out more about the different ways we can travel around the capital.”
Edinburgh’s ten-year City Mobility Plan aims to transform the way we move around the city, reducing emissions, positively impacting public health and tackling congestion amongst other benefits.
Actions include projects like City Centre Transformation, Trams to Newhaven, George Street and First New Town, 20-Minute Neighbourhoods and the extension of 20mph speed limits, as well as behaviour change initiatives and seamless public transport ticketing.
Neil Booth, Edinburgh Trams’ Safety Manager (Environment), commented: “Car-free days provide a massive opportunity for cities to raise awareness of how pollution affects our lives, and highlight how congested roads can be used in different ways.
“At Edinburgh Trams we are fully committed to helping to make Edinburgh healthier, safer and more attractive for both residents and visitors by providing a quick, convenient and reliable alternative to driving into the city centre.”
The colourful kaleidoscope theme for the 2022 event teased as special early bird tickets go on sale
Edinburgh Castle will transform into a ‘Kingdom of Colours’ this winter as the capital’s most iconic landmark is illuminated with state-of-the-art projections to highlight stories from Scotland’s history.
Guests can expect a truly immersive experience as Edinburgh Castle is brought to life once again through spectacular light and sound displays to brighten up the darker months.
Joining forces for a third year, Double Take Projections, NL Productions, Andy McGregor and War Productions Ltd, in partnership with Historic Environment Scotland, are back with an “all new for 2022” trail, creating another unmissable event in Edinburgh. Back by popular demand is the beloved Rex the lion rampant who will guide guests through colourful thematic zones during the 60-minute walking tour.
Early bird tickets are available until midnight on Friday 7 October for the world-class light trail running for six weeks over the festive period, Friday 18 November to Friday 30 December 2022 (select dates). A magical experience for people of all ages, the event will also have a fantastic selection of food and drink available for visitors as they make their way through the castle grounds.
Ticketed entry slots will run every 15 minutes between 4.30pm and 7.30pm each evening, with last entry between 7.30pm and 7.45pm. The event closes at 9pm. Adult early bird tickets cost £18 (using the promo code: COLSM22), with concession rates, family tickets and discounts for Historic Scotland members also available.
Researchers at Queen’s University Belfast have uncovered a key process that contributes to vision loss and blindness in people with diabetes. The findings could lead to new treatments that can be used before any irreversible vision loss has occurred.
Diabetic retinopathy is a common complication of diabetes and occurs when high blood sugar levels damage the cells at the back of the eye, known as the retina. There are no current treatments that prevent the advancement of diabetic retinopathy from its early to late stages, beyond the careful management of diabetes itself. As a result, a significant proportion of people with diabetes still progress to the vision-threatening complications of the disease.
As the number of people with diabetes continues to increase globally, there is an urgent need for new treatment strategies, particularly those that target the early stages of the disease to prevent vision loss.
The retina demands a high oxygen and nutrient supply to function properly. This is met by an elaborate network of blood vessels that maintain a constant flow of blood even during daily fluctuations in blood and eye pressure. The ability of the blood vessels to maintain blood flow at a steady level is called blood flow autoregulation. The disruption of this process is one of the earliest effects of diabetes in the retina.
The breakthrough made by researchers at Queen’s University Belfast pinpoints the cause of these early changes to the retina.
The study, published in the US journal JCI Insight, has discovered that the loss of blood flow autoregulation during diabetes is caused by the disruption of a protein called TRPV2. Furthermore, they show that disruption of blood flow autoregulation even in the absence of diabetes causes damage closely resembling that seen in diabetic retinopathy.
The research team are hopeful that these findings will be used to inform the development of new treatments that preserve vision in people with diabetes.
Professor Tim Curtis, Deputy Director at the Wellcome-Wolfson Institute for Experimental Medicine at Queen’s and corresponding author, explains: “We are excited about the new insights that this study provides, which explain how the retina is damaged during the early stages of diabetes.
“By identifying TRPV2 as a key protein involved in diabetes-related vision loss, we have a new target and opportunity to develop treatments that halt the advancement of diabetic retinopathy.”
The study was funded by the Biotechnology and Biological Sciences Research Council and the Department for the Economy Postgraduate Studentship scheme.
Adults with first-hand experience of social care services in Scotland are being invited to help design the new National Care Service (NCS).
Applications are now open for both the Lived Experience Experts Panel (LEEP) and Stakeholder Register, which will bring together people from across the country to help develop a care system that puts people first, in one of the biggest co-design exercises the Scottish Government has ever undertaken.
The new National Care Service will provide the national oversight and guidance that ensures community healthcare and social work services can be delivered locally in a way which best meets the needs of those who use them.
The panels launched today will allow people with direct experience of community health and social care the opportunity to help design these future services.
Anyone over the age of 18 living in Scotland who has views on how the future NCS should look can apply to take part in the Lived Experience Experts Panel.
Over the next few years the design work will consider a number of themes, the first of which are:
Information sharing to improve health and social care support
Realising rights and recognising responsibilities
Keeping health and social care support local
Making sure my voice is heard
Valuing the workforce
Organisations in Scotland with an interest in health and social care can note their interest in specific themes by joining the Stakeholder Register.
In the future, there will be additional targeted ways for people get involved – for example children and young people under 18, care experienced people, and young carers.
Minister for Social Care Kevin Stewart said: “As we build a National Care Service that best fits the needs of everyone in Scotland, we need to hear from people directly.
“The new National Care Service will set the standards and guidance to support the design and delivery of community healthcare and social work services locally.
“The complexities of getting this right should not be underestimated. People with experience of the current system, whether in receipt of health and care support or delivering it, are the experts. We particularly need to hear those voices.
“These reforms are the biggest since the creation of the National Health Service almost 75 years ago and these Lived Experience Experts and Stakeholder Panels will make sure we deliver a service that puts people at its very heart. I encourage anyone with direct experience of social care to take part.”
The first NCS Forum on 3 October in Perth will be another opportunity for individuals to engage and shape the NCS co-design process. Register to join the event online
This is not the only opportunity to get involved in co-design work. In the future, there will be additional ways for specific groups to get involved – for example children, young people and families, care experienced people, and young carers.
For this reason, we’re not asking children (under the age of 18) to join the Lived Experience Experts Panel right now. Instead, we will work with organisations that represent different groups of young people to make sure we reach as many different groups as we can and undertake research work in a way that best suits their needs.
Visitors to the National Museum of Flight in East Lothian will be able to enjoy one of Scotland’s best days out for free this weekend. The museum is part of the Doors Open Days programme on the 24 and 25 of September.
The National Museum of Flight is located on the UK’s best-preserved Second World War airfield and includes two historic wartime aircraft hangars which are packed with exciting displays telling the stories of military and civil aviation over the past century.
The Museum is home to Scotland’s only Concorde and visitors can see an example of the iconic Supermarine Spitfire that played such an important role in the Second World War.
The attraction houses the family-friendly Fantastic Flight gallery with its interactive exhibits where visitors can explore the science of aviation and discover how aeroplanes fly. They are also able to learn about East Fortune’s wartime heritage in the Museum’s Fortunes of War exhibition.
SPITFIRE TAKES PRIDE OF PLACE IN THE NEW HANGER AT THE MUSEUM OF FLIGHT, EAST FORTUNE.
Steve McLean, General Manager at the National Museum of Flight, said: “We’re delighted to open the National Museum of Flight for free this weekend.
“Doors Open Days offer a fantastic opportunity to discover some of Scotland’s finest heritage sites and hidden historic treasures, and we hope visitors old and new will enjoy exploring everything we have to offer in East Lothian.”
Doors Open Days is part of European Heritage Days and is supported by Historic Environment Scotland. The popular festival, which offers free access to buildings and events across Scotland, will return to Edinburgh and East Lothian on 24 and 25 September with an in-person and online programme.
Advance booking at the National Museum of Flight over the Doors Open Days weekend is recommended.
Find more information and to book your visit online at nms.ac.uk/flight
The Chancellor today (Friday 23 September) unveiled his Growth Plan to release the huge potential in the British economy by tackling high energy costs and inflation and delivering higher productivity and wages.
Chancellor unveils new growth plan, tackling energy costs to bring down inflation, backing business and helping households.
Corporation tax rise cancelled, keeping it at 19% as government sets sights on 2.5% trend rate of growth.
Basic rate of income tax cut to 19% in April 2023 – one year earlier than planned – with 31 million people getting on average £170 more per year.
Stamp Duty cuts will help people on all levels of the property market and lift 200,000 homebuyers every year out of paying the tax altogether.
The plan set the ambitious target for 2.5% trend of growth, securing sustainable funding for public services and improving living standards for everyone.
The Chancellor of the Exchequer, Kwasi Kwarteng, said: “Economic growth isn’t some academic term with no connection to the real world. It means more jobs, higher pay and more money to fund public services, like schools and the NHS.
“This will not happen overnight but the tax cuts and reforms I’ve announced today – the biggest package in generations – send a clear signal that growth is our priority.
“Cuts to stamp duty will get the housing market moving and support first-time buyers to put down roots. New Investment Zones will bring business investment and release land for new homes in communities across the country. And we’re accelerating new road, rail and energy projects by removing restrictions that have slowed down progress for too long.
“We want businesses to invest in the UK, we want the brightest and the best to work here and we want better living standards for everyone.”
Scottish Secretary Alister Jack said: “The Chancellor has set out an ambitious package of measures which will cut taxes and drive growth right across the UK.
“A strong economy is the best way to tackle the cost of living challenges we are all facing due to Russia’s invasion of Ukraine.
“Our ‘Plan for Growth’ will support households and businesses in Scotland, while driving economic growth to deliver jobs, investment and prosperity.
“The UK Government is delivering for the people of Scotland when it really matters.”
Setting out the first steps towards growth, Kwasi Kwarteng revealed a package of major cuts to Stamp Duty Land Tax, with the changes expected to increase additional residential investment, boost spending on household goods and support the hundreds of thousands of jobs in the property industry from removals companies to decorators.
The nil rate band will be doubled from £125,000 to £250,000, meaning that 200,000 more people every year will be able to buy a home without paying any Stamp Duty at all. The standard buyer in England will save £2,5000, meaning a typical family moving into a semi-detached property will save £2,500 on stamp duty and £1,150 on energy bills – and if they have a combined income of £50,000 around an additional £560 on tax. This is around £4,200 in total.
And the Government is going even further to support first time buyers, who will now pay no stamp duty up to £425,000, and increasing the value of the property on which first time buyers can claim relief, from £500,000 to £625,000. This tax cut took effect from midnight today (Friday 23 Sept 2022). The Chancellor also announced that he will further support homebuyers by increasing the disposal of surplus government land to build new homes, increasing supply.
The Chancellor also set out plans to tackle to the biggest drag on growth – the high cost of energy driven by Vladimir Putin’s invasion of Ukraine, which has driven up inflation. To tackle this the government’s Energy Price Guarantee will save the typical household £1,000 a year on their energy bill with the Energy Bill Relief Scheme halving the cost of business energy bills, reducing peak inflation by about 5 percentage points.
Also revealed today were major tax reforms to allow businesses to keep more of their own money, encouraging investment, boosting productivity and creating jobs. New measures include cancelling the planned rise in corporation tax, keeping it the lowest in the G20 at 19%, and reversing the 1.25 percentage point rise in National Insurance contributions, a change which will save 920,000 businesses almost £10,000 on average next year.
The Chancellor also announced more relief for businesses by making the Annual Investment Allowance £1 million permanently, rather than letting it return to £200,000 in March 2023. This gives 100% tax relief to businesses on their plant and machinery investments up to the higher £1 million limit.
It was also confirmed that the government is in discussion with 38 local and mayoral combined authority areas in England including Tees Valley, South Yorkshire and West of England to set up Investment Zones in specific sites within their area.
Each Investment Zone will offer generous, targeted and time limited tax cuts for businesses and liberalised planning rules to release more land for housing and commercial development. These will be hubs for growth, encouraging investment in new shopping centres, restaurants, apartments and offices, and creating thriving new communities.
Revealing further tax reforms, Kwasi Kwarteng outlined sector specific support for pubs and hospitality, freezing alcohol duty for another year. Reforms to modernise alcohol duties will also be taken forward and the government will publish a consultation on these plans.
The new measures backing business come on top of the government’s Energy Bill Relief Scheme for businesses to cap costs per unit, which will protect them from soaring energy costs this winter by providing a discount on wholesale gas and electricity prices.
The Chancellor also reiterated the important principle of people keeping more of what they earn, incentivising work and enterprise. He announced a 1p cut to the basic rate of income tax one year earlier than planned.
From April 2023, the basic rate of income tax will be cut to 19% and will mean 31 million people will be better off by an average of £170 per year. Due to the combined impact of the reversal of the HSCL and the reduction of the Income Tax Basic Rate, someone working full time on the current National Living Wage will see a tax cut of over £100.
Alongside cutting the basic rate of income tax, the Chancellor also abolished the additional rate of tax, taking effect from April 2023. In its place will be a single higher rate of income tax of 40%. The policy removes the UK’s previous top rate tax, which was higher than countries like Norway, USA and Italy, and is designed to attract the best and the brightest to the UK workforce, helping businesses innovate and grow.
In a further move to grow the economy, the Chancellor announced plans to accelerate new roads, rail and energy infrastructure. In 2021 it took 65 per cent longer to get consent for major infrastructure projects than in 2012. New legislation will cut barriers and restrictions, making it quicker to plan and build new roads, speeding up the deployment of energy infrastructure like offshore wind farms and streamlining environmental assessments and regulations.
To further support businesses, the Chancellor announced new measures to unlock private investment. The Government will change regulations to increase investment by pension funds into UK assets, benefiting savers and boosting economic growth, and incentivising investment into Britain’s science and tech companies.
New measures were also announced to help people on low incomes secure more and better paid work. Universal Credit Claimants who earn less than the equivalent of 15 hours a week at National Living Wage will be required to meet regularly with their Work Coach and take active steps to increase their earnings or face having their benefits reduced.
This change is expected to bring an additional 120,000 people into the more intensive work search regime. Jobseekers over the age of 50 will also be given extra time with jobcentre work coaches, to help them return to the jobs market.
Rising economic inactivity in the over 50s is contributing to shortages in the jobs market, driving up inflation and limiting growth. Returning to pre-pandemic activity rates in the over 50s could boost the level of GDP by 0.5-1 percentage points.
The majority of announcements today are UK-wide, however the Scottish Government is expected to receive more than £600 million extra funding over the 2021 Spending Review period as a result of the changes to income tax and Stamp Duty Land Tax and the Welsh Government will receive around £70 million over the same period as a result of the change to Stamp Duty Land Tax.
The reversal of the Health and Social Care Levy will save 4.3 million people across Scotland, Wales and Northern Ireland more than £230 on average next year.
In the coming weeks, the Government will set out further details of plans to speed up digital infrastructure, reform business regulation, increase housing supply, improve our immigration system, make childcare cheaper, improve farming productivity and back our financial services.
The business community has welcomed the Chancellor’s announcement.
Martin McTague, National Chair of the Federation of Small Businesses said:“The Truss Government is off to a flying start. The Chancellor has delivered pro-small business measures today and has rightly recognised that removing taxes on jobs, investment and entrepreneurs is essential for our economy.
“Ministers need to be relentless in removing barriers to small business success – especially with the current headwinds. The Government has today signalled its determination to back small firms and we look forward to working with Ministers and departments to put in place measures to help small businesses grow and succeed.”
Amanda Tickel, Head of Tax and Trade Policy, Deloitte said:“This Budget will undoubtedly attract international attention.
“With the UK now retaining the lowest corporate profits tax rate in the G20, a maximum income tax rate of 40%, and extra incentives available in investment zones, the UK is on a stronger footing to compete for international investment.
Emma Jones CBE, Founder, Enterprise Nation said:“It’s bold, it’s agile and it’s speedy. Economists will be arguing for months to come, but small businesses will be waiting for the impact of this budget trickling down into their sales tonight.
“The new administration clearly set out its stall today and that it is firmly on the side of entrepreneurs and wealth creators. The tax cuts, both business and personal, will deliver confidence and unleash the entrepreneurial spirit that we know exists across the UK and to which the Chancellor referred so often.
“The UK’s small businesses have wanted growth acceleration but have had to be content with stagnation because of barriers to growth such as access to finance, business rates and employment complexity.
“The extension of EIS and SEIS and the pension charge cap reforms will be welcomed with open arms by the small business community, and we expect more start-ups to follow with an emphasis on supporting those who are 50+ to move from unemployment into self-employment. Thanks to the removal of IR35, many experienced individuals that left the employment market will now return.
“Our view for more than a decade has been that one of the most important things a government can do is to champion entrepreneurs and this morning’s statement and announcements most seriously deliver on that.”
Kate Nicholls, CEO of UKHospitality said: “The stated objectives of boosting growth and tackling inflation are a positive statement of intent to rightly put business at the heart of the Government’s agenda.
“We support the ambition for a globally competitive tax regime, to unleash entrepreneurship, growth and investment, and we look forward to working with the Chancellor to deliver that.
“Energy support and NIC measures will allow our businesses to better plan for a tough winter ahead. Today’s announcement included many positive measures that will bear fruit in due course, and we look forward to continuing to work closely with the Government on our immediate challenges.”
Tony Danker, CBI Director-General, said:“This is a turning point for our economy. Like Covid, the energy crisis has meant Government has had to spend massively to protect people and businesses. That means we have no choice but to go for growth to afford it.
“Today is day one of a new UK growth approach. We must now use this opportunity to make it count and bring growth to every corner of the UK. Fifteen years of anaemic growth cannot be repeated.
“Taking action to get Britain’s economy moving again by beginning construction on transport and green infrastructure projects shows immediate delivery. Planning reform is long overdue.
“A simpler, smarter approach to tax can pay dividends, and firms will be keen to make the most of the investment incentives on offer.
“It’s not perfect – it’s just the beginning – but there’s plenty business can work with. The Chancellor signalled more proposals to come this Autumn and these will be vital to sustain momentum on growth.”
Michelle Ovens CBE, Founder, Small Business Britain said:“The focus on entrepreneurship in today’s Growth Plan statement is good news for small businesses, and a hugely encouraging step towards supporting this key part of the economy in a tough financial climate.
“The energy plan already announced, cutting prices for small businesses and addressing some of the astronomical rises we have seen this summer, will give businesses some reassurance over the winter months, even if there are still questions over the long term plans.
“There is no doubt that rolling back national insurance rises, IR35 regulations and the planned corporation tax rise next year will be welcomed by small businesses and the business community more widely. In the medium to long term, this will support and encourage entrepreneurial growth, which is very welcome.
“However there remain serious challenges in the short term as entrepreneurs battle with rising costs across all areas of the business, not just in energy and tax. Finance, input prices, export and staffing all remain challenging and we continue to see businesses failing at a high rate with little to fall back on after a very difficult few years.
“More will need to be done at all levels of society and government to ensure the 5.6 million small businesses in the UK can weather this winter and make the most of the supportive policies announced today.
“The direction of travel is absolutely right for small businesses. This now needs to be delivered by us all.”
Nicolas Burquier, Managing Director of Pizza Hut Europe said:“It’s great to see Government has acknowledged and is acting on the significant pressures facing the UK hospitality sector as a result of the rise in global inflation.
“Combined with the recently announced support on energy bills, the tax changes and Investment Zones unveiled today, all will offer some respite for many hard-pressed restaurants and takeaway owners like our franchisees.
“We look forward to continuing to work with the Government to ensure that hospitality receives the sustained support it requires as the sector looks to recover from current setbacks.”
Dr Liz Cameron CBE, Director & Chief Executive, Scottish Chambers of Commerce said:“The Chancellor’s commitment to pro-growth and pro-enterprise policies will be eagerly welcomed by businesses. The specifics on reducing business costs, cutting red tape and boosting infrastructure development are exactly the levers the UK Government should be pulling to support economic growth.
“The plans for Investment Zones strike an ambitious tone but these plans must provide equitable benefits to the UK nations ensuring new economic activity is generated, not simply displaced from one location to another. Similarly, fixing the complex and burdensome planning system must be a joint priority for both the Scottish and UK Government if we are to attract investors.
“As we look ahead to the Scottish Government’s emergency budget, businesses and households now play the waiting game to see if the Scottish Government opts to take similar moves. With control of powers such as income tax and land & buildings transaction tax devolved to Scotland, the expectation will be for Scottish Government to deliver parity with the rest of the UK. Divergence between the nations risks dampening business and investor confidence.
“The string of policy announcements from the Chancellor signal a bold start. As firms continue to navigate unprecedented challenges in the economy, consistent collaboration and partnership will be essential between both governments and the business community if we are to move from survival to growth.”
Stephen Phipson, Chief Executive, Make UK said:“The Chancellor has clearly recognised that we are heading for very stormy waters in the face of eyewatering increases in energy and other costs, together with a difficult international environment.
“Industry will welcome today’s statement which, coming on the back of the support for energy, contains a number of positive measures to help shield viable companies from the worst impact of escalating costs and help protect jobs. The focus on prioritising growth with plans to speed up planning reforms, boost infrastructure and investment is especially welcome.
“However, this is the sixth growth plan in little over a decade which has seen ever increasing political uncertainty. This has resulted in zero certainty for business, the most important thing it needs. Government must try and reverse this process by working with industry to develop a long-term economic strategy together with a National Manufacturing Plan.
“At its heart must be a properly designed tax system and a certainty of policy that aims to transform the low level of business investment, develops the workforce of the future and equips people with the digital skills they will need in the new industries and technologies which are rapidly emerging.
“Given the tools and, the right economic environment, industry can help itself and, at the same time, help the Government meet its growth target. Now is the time to end to put in place the right building blocks for the long-term.”
Emma McClarkin, Chief Executive of the British Beer and Pub Association, said:“We welcome the steps taken by the Government in the Chancellor’s fiscal statement. The measures announced today will mean a boost of £500m for our sector, enabling growth following successive crises and allowing us to thrive in the future.
“Coupled with this week’s intervention on energy bills, these commitments will make a significant difference to our pubs and brewers at an acutely difficult time.
“The Chancellor’s plans show that the Government recognises how extreme the cost of doing business has become and the enormous investment our sector makes, not only in the economy, but to the social fabric of communities across the breadth of the UK and why it must be protected. We look forward to the continued reduction of taxation on the sector at the next Budget – the need for a reduced VAT rate for hospitality and business rates reliefs remain as strong as ever.
“We will continue to work with the Government to ensure that reforms to the draft beer duty rates are brought forward as soon as possible, meaning that our pubs and brewers can contribute to, and be at the heart of villages, towns and cities for many years to come.”
Shevaun Havilland, Director General of the British Chambers of Commerce said:“Businesses will welcome many of the measures announced today that should boost economic growth, relieve cost pressures and encourage investment.
“The announcement to reverse the increase to National Insurance Contributions (NIC) is a big win for the British Chambers of Commerce and the business community. This is much needed support for companies during these difficult times.
“Firms will also be glad to see the Annual Investment Allowance made permanent. It is a crucial tool which gives them the confidence to push ahead with investment, and will add greater certainty to their plans, now we know it is guaranteed to remain.
“Business wants to create the wealth that funds Government spending, and plans for Investment Zones, and steps to encourage new funding in our growth industries have the potential to do just that.
“Investment Zones could also finally deliver on the Government’s long-standing promise to level up, if the scheme is truly UK-wide. But lessons must be learned from the past, otherwise they can simply displace growth and investment from one area to another without creating new economic activity.
“This is a bold start, and we now await further detail on the further reforms the Treasury announced, to see if this will develop into a comprehensive long-term economic strategy.
“All eyes will also now turn to the forecasts by the Office of Budget Responsibility in the autumn for reassurance on public finances.”
TUC: ‘ROBIN HOOD IN REVERSE’
Union body attacks Liz Truss for holding down wages while lining bankers’ pockets – “The party of pay cuts strikes again.”
Fresh attack on right to strike is “designed to hold down pay”
Responding to today’s ‘mini budget’, which announced tax cuts for corporations and the wealthy, but no help to get wages rising in the current cost of living crisis, TUC General Secretary Frances O’Grady said: “This budget is Robin Hood in reverse.
“We should be rewarding work, not wealth. But at the first opportunity, Liz Truss is holding down wages and lining the pockets of big corporations and City bankers. The party of pay cuts strikes again.
“We need a very different plan in the full autumn budget to do right by workers. The Chancellor should boost the minimum wage, universal credit and pensions before winter sets in.
“He should fund pay rises in the public sector that keep up with prices. And ministers should extend collective pay bargaining rights across the economy so that whatever your job, you can negotiate a fair pay rise.”
On restrictions on the right to strike, she added:“Nobody takes the decision to strike lightly. But the right to strike to defend pay and conditions is a fundamental British freedom.
“And it’s the last line of defence against employers who refuse to negotiate fair pay. These new restrictions are unworkable, very likely illegal and designed to hold down pay across the economy.”
On support with energy costs and the government’s rejection of calls for a higher windfall tax, she added:“Ministers are letting oil and gas giants use Britain like a cash machine with no withdrawal limit.
“We need a much higher windfall tax on greedy energy companies to protect families from profiteering. That could fund free home improvements so that families don’t lose money by leaking heat from their homes.”
The TUC’s submission to the Treasury in advance of today’s mini budget called for the following actions:
Bring forward inflation proof increases in the minimum wage, universal credit and pensions to October to help families through the cost-of-living emergency.
Get the minimum wage on a path to £15 an hour as soon as possible.
Give public service staff a real-terms pay rise that at least matches the rising cost of living and begins to restore earnings lost over the last decade.
Strengthen and extend collective bargaining across the economy, including introducing fair pay agreements to set minimum pay across whole sectors.
Impose a larger windfall tax on oil and gas companies that that are profiteering from UK families.
Make sure everyone pays their fair share of taxes by going ahead with increases in corporate tax, and equalising capital gains tax rates with income tax as a first step to fair taxes on wealth.
Chancellor’s measures fail to target support
Deputy First Minister says statement is ‘cold comfort for many’
The Chancellor’s fiscal statement and package of announcements targets the most wealthy, shifting further pressure onto the shoulders of those on the lowest incomes, Deputy First Minister John Swinney has said.
Reacting to the statement, Mr Swinney expressed his disappointment that while many households across Scotland are already struggling to pay their bills and heat their homes, the measures offer tax cuts for corporations and bankers.
The Deputy First Minister said: “The Chancellor’s statement today will provide cold comfort to the millions of people across Scotland who have been looking for the UK Government to use its reserved powers to provide support for those that need it most. Instead we get tax cuts for the rich and little for those who need it most.
“We estimate that the increase in the price cap to £2,500 will force an estimated 150,000 more Scottish households into extreme fuel poverty. Instead of offering these people support, the Chancellor is threatening to cut their family budgets further, with a new regime of benefit sanctions.
“On Land and Buildings Transaction Tax and on Scottish income tax, the Scottish Government will set out its plans as part of the normal budget process. We will discuss the proposed investment zones with the UK Government but we are clear they have to be the right fit for Scotland.
“Because of inflation, the Scottish Government’s budget is worth £1.7 billion less than it was when we set it in December, yet the Chancellor has refused to provide a single additional penny for public services or increase public sector pay.
“We are doing everything within our power to support people, public services and the economy, but these efforts are under threat by a reckless UK Government beginning a new, and dangerous race to the bottom. With a fixed Budget and no scope to borrow for short term challenges, Scotland is at the mercy of UK decisions. This reinforces the urgent need for independence.”
Factsheets on each of the major measures can be found here:
The Growth Plan speech delivered by Chancellor Kwasi Kwarteng:
Mr Speaker,
Let me start directly with the issue most worrying the British people – the cost of energy.
People will have seen the horrors of Putin’s illegal invasion of Ukraine.
They will have heard reports that their already-expensive energy bills could reach as high as £6,500 next year.
Mr Speaker, we were never going to let this happen.
The Prime Minister has acted with great speed to announce one of the most significant interventions the British state has ever made.
People need to know that help is coming.
And help is indeed coming.
We are taking three steps to support families and businesses with the cost of energy.
Firstly, to help households, the Energy Price Guarantee will limit the unit price that consumers pay for electricity and gas.
This means that for the next two years, the typical annual household bill will be £2,500.
For a typical household, that is a saving of at least £1,000 a year, based on current prices.
We are continuing our existing plans to give all households £400 off bills this winter.
So taken together, Mr Speaker, we are cutting everyone’s energy bills by an expected £1,400 this year.
And millions of the most vulnerable households will receive additional payments, taking their total savings this year to £2,200.
Secondly, as well as helping people, we need to support the businesses who employ them.
The Energy Bill Relief Scheme will reduce wholesale gas and electricity prices for all UK businesses, charities, and the public sector like schools and hospitals.
This will provide a price guarantee equivalent to the one provided for households, for all businesses across the country.
Thirdly, energy prices are extremely volatile, erratically rising and falling every hour.
This creates real risks to energy firms who are otherwise viable businesses.
Those firms help supply the essential energy needed by households and businesses.
So to support the market, we are announcing the Energy Markets Financing Scheme.
Delivered with the Bank of England, this scheme will provide a 100% guarantee for commercial banks to offer emergency liquidity to energy traders.
Mr Speaker,
The consensus amongst independent forecasters is that the Government’s energy plan will reduce peak inflation by around 5 percentage points.
It will reduce the cost of servicing index-linked government debt and lower wider cost of living pressures.
And it will help millions of people and businesses right across the country with the cost of energy.
Let no one doubt: during the worst energy crisis in generations, this Government is on the side of the British people.
The Bank of England are taking further steps to control inflation, acting again only yesterday.
I can assure the House, this Government considers the Bank of England’s independence to be sacrosanct.
And we remain closely coordinated, with the Governor and myself speaking twice a week.
But Mr Speaker,
High energy costs are not the only challenge confronting this country.
Growth is not as high as it should be.
This has made it harder to pay for public services, requiring taxes to rise.
In turn, higher taxes on capital and labour have lowered returns on investment and work, reducing economic incentives and hampering growth still further.
This cycle has led to the tax burden being forecast to reach the highest levels since the late 1940s – before even Her Late Majesty acceded to the throne.
We are determined to break that cycle.
We need a new approach for a new era, focused on growth.
Our aim, over the medium term, is to reach a trend rate of growth of 2.5%.
And our plan is to expand the supply side of the economy through tax incentives and reform.
That is how we will deliver higher wages, greater opportunities, and crucially, fund public services, now and into the future.
That is how we will compete successfully with dynamic economies around the world.
That is how we will turn the vicious cycle of stagnation into a virtuous cycle of growth.
So as a Government, we will focus on growth – even where that means taking difficult decisions.
None of this is going to happen overnight. But today we are publishing our Growth Plan that sets out a new approach for this new era, built around three central priorities:
Reforming the supply-side of the economy.
Maintaining responsible approach to public finances
And cutting taxes to boost growth.
Mr Speaker,
The UK has the second-lowest debt to GDP ratio of any G7 country.
In due course, we will publish a Medium-Term Fiscal Plan, setting out our responsible fiscal approach more fully.
Including how we plan to reduce debt as a percentage of GDP over the medium term.
And the OBR will publish a full economic and fiscal forecast before the end of the year, with a second to follow in the new year.
Fiscal responsibility remains essential for economic confidence, and it is a path we remain committed to.
Today we are publishing costings of all the measures the Government has taken.
And those costings will be incorporated into the OBR’s forecast in the usual way.
The House should note that the estimated costs of our energy plans are particularly uncertain, given volatile energy prices.
But based on recent prices, the total cost of the energy package, for the six months from October, is expected to be around £60bn.
We expect the cost to come down as we negotiate new, long term energy contracts with suppliers.
And, in the context of a global energy crisis, it is entirely appropriate for the government to use our borrowing powers to fund temporary measures in order to support families and businesses.
That’s what we did during the Covid-19 pandemic.
A sizeable intervention was right then…and it is right now.
The heavy price of inaction would have been far greater than the cost of these schemes.
Mr Speaker,
We are at the beginning of a new era.
As we contemplate this new era, we recognise that there is huge potential in our country.
We have unbounded entrepreneurial drive.
We have highly skilled people.
We have immense global presence in sectors like finance, life sciences, technology, and clean energy.
But Mr Speaker, there are too many barriers for enterprise. We need a new approach to break them down. That means reforming the supply side of our economy.
Over the coming weeks, my Cabinet colleagues will update the House on every aspect of our ambitious agenda.
Those updates will cover: the planning system, business regulations, childcare, immigration, agricultural productivity, and digital infrastructure.
And Mr Speaker, we start this work today.
An essential foundation of growth is infrastructure.
The roads, railways, and networks that carry people, goods, and information all over our country.
Today, our planning system for major infrastructure is too slow and fragmented.
The time it takes to get consent for nationally significant projects is getting slower, not quicker, while our international competitors forge ahead.
We have to end this.
We can announce that in the coming months, we will bring forward a new Bill to unpick the complex patchwork of planning restrictions and EU-derived laws that constrain our growth.
We will streamline a whole host of assessments, appraisals, consultations, endless duplications, and regulations.
We will also review the government’s business case process to speed up decision making.
And today, we are publishing a list of infrastructure projects that will be prioritised for acceleration, in sectors like transport, energy, and telecoms.
And, to increase housing supply and enable forthcoming planning reforms, we will also increase the disposal of surplus government land to build new homes.
Mr Speaker, we are getting out of the way to get Britain building.
Mr Speaker,
One of the proudest achievements of our government is that unemployment is at the lowest level for nearly fifty years.
But with more vacancies than unemployed people to fill them, we need to encourage people to join the labour market.
We will make work pay by reducing people’s benefits if they don’t fulfil their job search commitments.
We’ll provide extra support for unemployed over-50s.
And we’ll ask around 120,000 more people on Universal Credit to take active steps to seek more and better paid work, or face having their benefits reduced.
And, Mr Speaker,
At such a critical time for our economy, it is simply unacceptable that strike action is disrupting so many lives.
Other European countries have Minimum Service Levels to stop militant trade unions closing down transport networks during strikes.
So we will do the same.
And we will go further.
We will legislate to require unions to put pay offers to a member vote, to ensure strikes can only be called once negotiations have genuinely broken down.
Of course, Mr Speaker, to drive growth, we need new sources of capital investment.
To this end, I can announce that we will accelerate reforms to the pension charge cap so that it will no longer apply to well-designed performance fees.
This will unlock pension fund investment into UK assets and innovative, high growth businesses.
It will benefit savers and increase growth.
And, we will provide up to £500 million to support new innovative funds and attract billions of additional pounds into UK science and technology scale-ups.
And Mr Speaker, this brings me to the cap on bankers’ bonuses.
A strong UK economy has always depended on a strong financial services sector.
We need global banks to create jobs here, invest here, and pay taxes here in London, not Paris, not Frankfurt, not New York.
All the bonus cap did was to push up the basic salaries of bankers, or drive activity outside Europe.
It never capped total remuneration, so let’s not sit here and pretend otherwise.
So we’re going to get rid of it.
And to reaffirm the UK’s status as the world’s financial services centre, I will set out an ambitious package of regulatory reforms later in the Autumn.
But Mr Speaker,
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.
And we will cut taxes.
For businesses in designated tax sites, for ten years, there will be:
Accelerated tax reliefs for structures and buildings.
And 100% tax relief on qualifying investments in plant and machinery.
On purchases of land and buildings for commercial or new residential development, there will be no stamp duty to pay whatsoever.
On newly occupied business premises, there will be no business rates to pay whatsoever.
And if a business hires a new employee in the tax site, then on the first £50,000 they earn…
…the employer will pay no National Insurance whatsoever.
That is an unprecedented set of tax incentives for business to invest, to build, and to create jobs right across the country.
I can confirm for the House that we’re in early discussions with nearly 40 places like Tees Valley, the West Midlands, Norfolk and the West of England to establish Investment Zones.
And we’ll work with the devolved administrations and local partners to make sure Scotland, Wales and Northern Ireland will also benefit, if they are willing to do so.
If we really want to level up, Mr Speaker – we have to unleash the power of the private sector.
And now, Mr Speaker, we come to tax – central to solving the riddle of growth.
The tax system is not simply about raising revenue for public services, vitally important though that is. Tax determines the incentives across our whole economy.
And we believe that high taxes reduce incentives to work, they deter investment and they hinder enterprise.
As the Prime Minister has said, we will review the tax system to make it simpler, more dynamic, and fairer for families.
And we are taking that first step today.
Mr Speaker,
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.
Every additional tax on business is ultimately passed through to families through higher prices, lower pay, or lower returns on savings.
So 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 £19bn a year back into the economy.
That’s £19bn for businesses to reinvest, create jobs, raise wages, or pay the dividends that support our pensions.
I’ve already taken steps elsewhere in this statement to support financial services, so the Bank Surcharge will remain at 8%.
But, Mr Speaker, we will do more to encourage private investment.
The Annual Investment Allowance, which gives 100% tax relief on investments in plant and machinery, will not fall to £200,000 as planned…
It will remain at £1m.
And it will do so permanently.
Our duty is to make the UK one of the most competitive economies in the world – and we are delivering.
And Mr Speaker,
We want this country to be an entrepreneurial, share-owning democracy.
The Enterprise Investment Scheme. The Venture Capital Trusts. We will extend them beyond 2025.
The Seed Enterprise Investment Scheme. Company Share Option Plans. We will increase the limits to make them more generous.
Crucial steps on the road to making this a nation of entrepreneurs.
Mr Speaker,
For the tax system to favour growth, it needs to be much simpler.
I’m hugely grateful to the Office of Tax Simplification for everything they have achieved since 2010.
But instead of a single arms-length body which is separate from the Treasury and HMRC, we need to embed tax simplification into the heart of Government.
That is why I have decided to wind down the Office of Tax Simplification, and mandated every one of my tax officials to focus on simplifying our tax code.
To achieve a simpler system, I will start by removing unnecessary costs for business.
Firstly, we will automatically sunset EU regulations by December 2023, requiring departments to review, replace or repeal retained EU law.
This will reduce burdens on business, improve growth, and restore the primacy of UK legislation.
Mr Speaker, we can also simplify the IR35 rules – and we will.
In practice, reforms to off-payroll working have added unnecessary complexity and cost for many businesses.
So, as promised by My RHF the Prime Minister, we will repeal the 2017 and 2021 reforms.
Of course, we will continue to keep compliance closely under review.
Mr Speaker,
Britain welcomes millions of tourists every year, and I want our high streets and airports, our ports and our shopping centres, to feel the economic benefit.
So we have decided to introduce VAT-free shopping for overseas visitors.
We will replace the old paper-based system with a modern, digital one.
And this will be in place as soon as possible.
This is a priority for our great British retailers – so it is our priority, too.
Our drive to modernise also extends to alcohol duties.
I have listened to industry concerns about the ongoing reforms.
I will therefore introduce an 18-month transitional measure for wine duty.
I will also extend draught relief to cover smaller kegs of 20 litres and above, to help smaller breweries.
And, at this difficult time, we are not going to let alcohol duty rates rise in line with RPI.
So I can announce that the planned increases in the duty rates for beer, for cider, for wine, and for spirits will all be cancelled.
Now, Mr Speaker, we come to the question of personal taxation.
It is an important principle that people should keep more of the money they earn. And it is good policy to boost the incentives for work and enterprise.
Yesterday, we introduced a Bill that means the Health and Social Care Levy will not begin next year… it will be cancelled.
The increase in Employer National Insurance Contributions and dividends tax… will be cancelled.
And the interim increase in the National Insurance rate, brought in for this tax year…will be cancelled.
And this cut will take effect from the earliest possible moment, November 6th.
Reversing the Levy delivers a tax cut for 28 million people, worth, on average, £330 every year;
A tax cut for nearly a million businesses;
And I can confirm: the additional funding for the NHS and social care services will be maintained at the same level.
Mr Speaker,
I have another measure.
Today’s statement is about growth.
Home ownership is the most common route for people to own an asset, giving them a stake in the success of our economy and society.
So to support growth, increase confidence, and help families aspiring to own their own home, I can announce that we are cutting stamp duty.
In the current system, there is no stamp duty to pay on the first £125,000 of a property’s value.
We are doubling that – to £250,000.
First time buyers currently pay no stamp duty on the first £300,000.
We’re increasing that threshold as well, to £425,000.
And we’re going to increase the value of the property on which first time buyers can claim relief, from £500,000 to £625,000.
The steps we’ve taken today mean 200,000 more people will be taken out of paying stamp duty altogether.
This is a permanent cut to stamp duty, effective from today.
And Mr Speaker,
I have another measure.
High tax rates damage Britain’s competitiveness.
They reduce the incentive to work, invest, and start a business.
And the higher the tax, the more ways people seek to avoid them, or work elsewhere or simply work less…
…rather than putting their time and effort to more creative and productive ends.
Take the additional rate of income tax.
At 45%, it is currently higher than the headline top rate in G7 countries like the US and Italy.
And it is higher even than social democracies like Norway.
But I’m not going to cut the additional rate of tax today, Mr Speaker.
I’m going to abolish it altogether.
From April 2023, we will have a single higher rate of income tax of 40 per cent.
This will simplify the tax system and make Britain more competitive.
It will reward enterprise and work.
It will incentivise growth.
It will benefit the whole economy and whole country.
And, Mr Speaker, after all, this only returns us to the same top rate we had for 20 years.
And that’s not all.
I can announce today that we will cut the basic rate of income tax to 19p in April 2023 – one year early.
That means a tax cut for over 31 million people in just a few months’ time.
This means we will have one of the most competitive and pro-growth income tax systems in the world.
Mr Speaker,
For too long in this country, we have indulged in a fight over redistribution.
Now, we need to focus on growth, not just how we tax and spend.
We won’t apologise for managing the economy in a way that increases prosperity and living standards.
Our entire focus is on making Britain more globally competitive – not losing out to our competitors abroad.
The Prime Minister promised that this would be a tax-cutting government.
Today, we have cut stamp duty.
We have allowed businesses to keep more of their own money to invest, to innovate, and to grow.
We have cut income tax and national insurance for millions of workers.
And we are securing our place in a fiercely competitive global economy…
…with lower rates of corporation tax…
…and lower rates of personal tax.
We promised to prioritise growth.
We promised a new approach for a new era.
We promised, Mr Speaker, to release the enormous potential of this country.
Our Growth Plan has delivered all those promises and more.
Dogs Trust warns many families are in danger of losing their dogs to the financial crisis this winter
43% of dog owners in Scotland think it is now more difficult to give their dog all they need, compared to before the cost of living crisis began.
As new Chancellor Kwasi Kwarteng’s mini-budget looms, the UK’s leading dog welfare charity, which has a rehoming centre in Glasgow and West Calder, has warned that it is receiving unprecedented numbers of enquiries from desperate dog owners who feel they’ve run out of options.
Record numbers
In recent months, the charity has received a record number of calls from people asking it to take in their dogs. August surpassed its previous record for the most enquiries in a single month, with almost 5,000 (4,993) owners enquiring about its handover service – a 14% increase on July this year, and a 26% increase from August 2021.
September YouGov poll
The number of people looking to give up their dogs is placed in context by Dogs Trust’s September poll of the UK’s dog owners, run by YouGov. This month’s poll shows that 43% of respondents in Scotland thought they would find it more difficult to give their dog all they needed, compared to before the cost of living crisis began.
Vet bills continued to cause the most worry; 52% of dog owners in Scotland said vet bills were currently their biggest financial canine concern for the coming year. 23% of respondents were most worried about the cost of dog food, while 10% named insurance as their lead worry.
Meanwhile, when non-dog owners were asked, as part of the September poll, whether the rising cost of living would prevent them from adopting or buying a dog, more than 6 out of ten (65%) said it would.
Owen Sharp, Dogs Trust CEO, says: “Dogs Trust has been receiving a shocking and unprecedented number of calls from dog owners asking us to take in their dogs because they feel they won’t be able to see them through this crisis.
“Over the last month, we received on average 17 handover calls an hour from desperate owners feeling they’ve run out of options.
“Combine this with the fact that 65% of people in Scotland told us, in our new cost of living poll, that they wouldn’t be prepared to take on a dog right now, and it’s clear to see we’re about to have a serious animal welfare issue on our hands.”
How you can help
As the nation faces its worst financial crisis in decades, Dogs Trust is urgently seeking help for the dogs who will feel the impact. The charity is calling out, in particular, to people with space in their homes and hearts for dogs that are more difficult to find forever homes for, such as big dogs, un-housetrained dogs, and dogs with challenging behaviour.
POLICE are appealing for information after jewellery and war medals were stolen in a housebreaking in Edinburgh.
Between 10pm and midnight on Saturday, 17 September, 2022, three people, dressed in dark clothing and wearing balaclavas, forced entry to a house in Napier Road, Merchiston. They stole various items, including a safe which contained jewellery and war medals.
Officers have been carrying out door-to-door enquiries and are reviewing any relevant CCTV from the surrounding area for any additional information on the suspects.
Enquiries carried out so far have established the suspects broke into the rear of the property and left by the front door, getting into a dark coloured car, which drove off towards Colinton Road.
Detective Constable Scott Lynas said: “The medals and jewellery are of great sentimental value and family members are shocked and upset that the items have been stolen.
“I am appealing to anyone who has any information to get in touch. I would also ask people to contact us if they become aware of anyone trying to sell or pass on items of jewellery or medals.
“No matter how insignificant your information may seem to you, please do pass it on, your information could be the link that helps us identify the suspects and enable us to return the items to their rightful owners.”
Anyone with information is asked to call Police Scotland via 101, quoting incident number 1226 of 18 September, 2022. Alternatively, please pass your information confidentially to Crimestoppers on 0800 555 111.
Chancellor set to outline his vision for “a new era for Britain” focused on economic growth.
38 local and combined authorities in England in the running to establish new Investment Zones to get their local economies growing.
Kwasi Kwarteng is expected to announce new legislation to speed up the delivery of around 100 major infrastructure projects across the UK.
THE CHANCELLOR will today promise “a new era for Britain” focused on driving economic growth.
Kwasi Kwarteng will announce The Growth Plan – a major package of over 30 measures to tackle high energy bills, drive down inflation and cut taxes to drive growth, while maintaining responsible public finances.
Igniting growth by lowering taxes and cutting regulation is this government’s central mission – it will encourage business investment, drive growth, create jobs, improve living standards for everyone and promote confidence in the UK economy.
Speaking about his priorities in his speech to the House of Commons, the Chancellor of the Exchequer, Kwasi Kwarteng, is expected to say: “Growth is not as high as it needs to be, which has made it harder to pay for public services, requiring taxes to rise.
“This cycle of stagnation has led to the tax burden being forecast to reach the highest levels since the late 1940s.
“We are determined to break that cycle. We need a new approach for a new era focused on growth.
“That is how we will deliver higher wages, greater opportunities and sufficient revenue to fund our public services, now and into the future.
“That is how we will compete successfully with dynamic economies around the world.
“That is how we will turn the vicious cycle of stagnation into a virtuous cycle of growth.
“We will be bold and unashamed in pursuing growth – even where that means taking difficult decisions.
“The work of delivery begins today”.
The Chancellor will announce that the government is in discussion with 38 local and mayoral combined authority areas in England including West Midlands, Tees Valley, Somerset and Hull to set up new Investment Zones in specific sites within their area. These will be hubs for growth and are emblematic of the modern Britain that this government want to create.
Under a brand-new initiative, each Investment Zone will offer generous, targeted and time-limited tax cuts for businesses, backing them to increase productivity and create new jobs. This could encourage investment in new shopping centres, restaurants, apartments and offices – creating thriving new communities.
These areas will also benefit from further liberalised planning rules to release more land for housing and commercial development, and reforms to increase the speed of delivering development.
It will include reforms to environmental regulation and streamlined local and national planning policies, for example removing height restrictions on development, so that Investment Zones can bring forward more development – including housing and commercial sites – at the pace needed to boost growth.
Time-consuming negotiations between councils and developers for each project over affordable housing contributions will be scrapped. This will be replaced with a set percentage of affordable homes, whilst ensuring communities get the infrastructure they want and need.
Investment Zones will only be established with support from local leaders. The government will work closely with areas to develop tailored proposals that support their ambitions and deliver benefits for local residents.
The Government will work in partnership with Devolved Administrations and local partners in Scotland, Wales and Northern Ireland to deliver Investment Zones.
The Chancellor is expected to say: “The time it takes to get consent for nationally significant projects is getting slower, not quicker, while our international competitors forge ahead. We have to end this.
“To support growth right across the country, we need to go further, with targeted action in local areas.
“We will liberalise planning rules in specified agreed sites, releasing land and accelerating development.
“And we will cut taxes, with businesses in designated sites enjoying the benefit of generous tax reliefs”.
The Chancellor will also set out an ambitious package of measures, including new legislation, to accelerate the delivery of around 100 major infrastructure projects across the country. The Growth Plan also sets out the infrastructure projects that the government will prioritise for acceleration, across transport, energy, and digital infrastructure.
In 2021 it took 65 per cent longer to get consent for major infrastructure projects than in 2012, with not a single new nuclear-power station finished since 1995.
The development, consultation and consent for a large road scheme takes an average of 5 to 7 seven years, while some offshore wind farms can take up to 13 years from development to deployment and other projects require 34,000 pages of documentation.
The Norfolk Vanguard wind farm, a 1.8GW-wind farm project located in the off the coast of Norfolk that will power almost 2 million homes, took almost 4 years to go through just the planning stages and faced a legal challenge over the visual impact of the scheme delaying the development consent by a further year.
The Junction 10A of the M20, an international route which is used by large volumes of heavy goods and holiday traffic, took seven and a half years from the review of the preferred scheme to be granted planning permission due to delays in the planning system.
The Chancellor will set out plans to reverse this trend speeding up projects including new roads and railways, by reducing the burden of environmental assessments in the consultation process and reforming habitats and species regulations, driving the UK’s economic growth.
Legislation will be brought forward in the coming months to address barriers to delivery by reducing unnecessary burdens to speed up the delivery of vital infrastructure.
These reforms are part of the government’s effort to accelerate projects vital to securing our energy security, such as 6GW capacity of offshore wind power and support other nationally significant infrastructure such as Hinkley Point C and Sizewell C, A417 Air Balloon and Project Gigabit.
Drop false choice between the environment and the economy, urges CPRE
Commenting on the Chancellor’s mini-Budget, Sarah McMonagle, Acting Director of Campaigns and Policy at CPRE, the countryside charity, said: ‘This government needs to drop the false choice between the environment and the economy and get on with delivering the basic building blocks for thriving rural communities that have been neglected for too long.
“But sadly, the government seems hell bent on repeating the mistakes of the past rather than pursuing the policies rural communities really need in order to thrive.
‘If ministers want to see booming high streets in our market towns then they should be investing in a reliable and comprehensive bus network, not fast tracking road building schemes that have long since been proven not to deliver meaningful economic gains.
‘If ministers want to see more money in people’s pockets they should be delivering a massive programme of genuinely affordable homes not trying to bypass the democratic planning system.
‘If ministers want to keep business costs down, they should be making use of the 250,000 hectares of south facing commercial roofspace across the country to achieve a revolution in cheap domestically generated solar energy, not breaking manifesto commitments by trying to resurrect a fracking industry that will have no meaningful impact on wholesale gas prices.
‘The government’s plan to achieve growth by allowing businesses to trash the environment is a recipe for disaster that will ultimately leave rural communities poorer.’
The 1.25 percentage point rise in National Insurance will be reversed from 6 November, Chancellor Kwasi Kwarteng has announced
April’s National Insurance increase to be reversed from November – delivering on key PM pledge to cut tax burden and promote economic growth
Health and Social Care Levy will be cancelled through Bill introduced today – Chancellor has confirmed funding for health and social care services will be protected and will remain at the same level as if the Levy were in place
Almost 28 million people will keep an extra £330 of their money on average next year, whilst 920,000 businesses are set to save almost £10,000 on average next year thanks to the change
Delivering on the Prime Minister’s pledge to slash taxes to help drive growth, scrapping the rise will reduce tax for 920,000 businesses by nearly £10,000 on average next year as they will no longer pay a higher level of employer National Insurance and can now invest the money as they choose.
The government will also cancel the planned Health and Social Care Levy – a separate tax which was coming into force in April 2023 to replace this year’s National Insurance rise.
This will help almost 28 million people across the UK keep more of what they earn, worth an extra £330 on average in 2023-24, with an additional saving of around £135 on average this year.
The Health and Social Care Levy (Repeal) Bill, legislating for the tax change, has been introduced into the House today. As part of the cancellation of the Levy, The Chancellor is also set to confirm that the increases to dividend tax rates will be scrapped from April 2023 in his Growth Plan tomorrow.
The increased dividend tax was introduced in April 2022 to ensure those who gained income from dividends contributed the same amount to help fund health and social care.
The Levy was expected to raise around £13 billion a year to fund health and social care. The Chancellor confirmed today that the funding for health and social care services will be maintained at the same level as if the Levy was in place, protecting the NHS through the winter and ensuring long-term investment in social care.
Chancellor of the Exchequer Kwasi Kwarteng said: “Taxing our way to prosperity has never worked. To raise living standards for all, we need to be unapologetic about growing our economy.
“Cutting tax is crucial to this – and whether businesses reinvest freed-up cash into new machinery, lower prices on shop floors or increased staff wages, the reversal of the Levy will help them grow, whilst also allowing the British public to keep more of what they earn.”
The previous government decided to raise National Insurance by 1.25 percentage points in April 2022 to fund health and social care. The rate was due to return to 2021-22 levels in April 2023, when a separate new 1.25% Health and Social Care Levy was due to take effect. Today’s legislation reverses the rise from earlier this year and cancels next year’s introduction of the Levy.
This is part of the government’s pro-growth agenda, backing business to invest, innovate and create jobs and helping raise living standards for everyone across the UK.
920,000 businesses will see a cut in National Insurance bills, with 20,000 taken out of paying National Insurance entirely due to the Employment Allowance, which rose in April 2022 from £4,000 to £5,000.
In particular, many small and medium businesses (SMEs) – who employ over 13 million people in the UK – will see a cut to their National Insurance bills. Next year this will be worth £4,200 on average for small businesses and £21,700 for medium sized firms who pay National Insurance. In total 905,000 micro, small and medium businesses will benefit from 2023-24.
National Insurance thresholds increased in July 2022 to lift 2.2 million of the poorest people in the UK out of paying the tax. The Chancellor has committed to retaining the level of these thresholds to support families. Taken together, the higher thresholds and the Levy reversal mean that almost 30 million people will be better off by an average of over £500 in 2023-24.
With immediate action pledged by the Prime Minister to maximise the cash benefit for people and businesses this year, the government is implementing the changes as soon as possible. Most employees will receive a cut to their National Insurance directly via payroll in their November pay, with some receiving it in December or January, depending on the complexity of their employer’s payroll software.
In addition, the Chancellor is expected to announce in his fiscal event tomorrow that the 1.25 percentage point increase to income tax on dividends announced alongside the Levy, and introduced in April 2022, will be reversed from April 2023.
Those who pay tax on dividends will save an average of £345 next year. The reversal of the ‘dividend tax’ rise signals renewed support for entrepreneurs and investors as part of the government’s drive to grow the economy and improve the standard of life for families across the UK.
Overall funding for health and social care services will be maintained at the same level as if the Levy were in place, and the government will be doing this without a tax increase. The additional funding used to replace the expected revenue from the Levy will come from general taxation.
The Chancellor is committed to reducing debt-to-GDP ratio over the medium-term and boosting growth, which will help sustainably fund public services.
Business leaders have welcomed the announcement.
Martin McTague, National Chair, the Federation of Small Businesses said: “This is clear and decisive action to support growth.
“The decision to reverse all four of these tax rises will support livelihoods, jobs and small businesses across the UK. Removing taxes on jobs, investment and growth is the right thing to do, and FSB has campaigned long and hard for this decision.
“The Chancellor is making clear he will let small businesses do what they do best: create jobs and support their local communities.
Shevaun Haviland, Director General, the British Chambers of Commerce said:“After months of campaigning, today’s Government announcement to reverse the increase to the National Insurance Contribution (NIC) is a big win for the British Chambers of Commerce and the business community.
“This is much needed support for businesses during these difficult times.
“There are a range of other challenges that must be addressed including labour shortages, supply chain disruption, and rising raw material costs.
“Tomorrow’s mini budget from the Chancellor is now a critical moment. To truly revitalise our economy for the difficult months ahead then tomorrow must bring a clear long-term plan that gives business the confidence to grow.”
Michelle Ovens CBE, founder, Small Business Britain said: “Small businesses need all the help they can get right now, so this move to reverse the national insurance rise will no doubt be received positively by business owners across the country, providing a boost that will go some way to help the many small firms out there struggling with cash flow.
“It is also good to see the immediacy of the action taken.”
Kitty Ussher, Chief Economist, the Institute of Directors, said: ““Businesses right across the country will be applauding the Government’s realisation that raising employers’ national insurance was a mistake.
“As the Institute of Directors has consistently and repeatedly argued from the outset, this was quite simply a tax on jobs, which businesses had to pay regardless of whether they are profitable. And the public agreed – the petition we launched at the beginning of the year attracted over 189,000 signatures.
“Many of our members told us that the impact of the increase was that they would have no choice but to push up prices, making inflation even worse. Others said the rise in the cost of employing people meant they would think twice about taking new staff on, or potentially make the difficult decision to let colleagues go.
“An independent report we commissioned from NIESR confirmed that the tax would reduce the UK’s international competitiveness and hit hardest those parts of the economy that suffered most from the pandemic. And even the Treasury itself said it would have ‘significant macroeconomic impact’.
Verity Davidge, Director of Policy, Make UK, said:“The Chancellor has clearly recognised the difficult situation companies are facing in response to eye watering increases in costs across the board.
“This is a welcome common sense reversal of a proposal which was both illogical and ill-timed when it was announced and, is even more so now given it is a tax on jobs. With the cost of employment in particular skyrocketing this will put cash back in the pockets of businesses and consumers at a time when they are burning through their cashflow at a rate of knots.
“Therefore, at a time when business is already facing unprecedented energy and other supply-side costs, this is a hugely important change that can improve the situation for SMEs trying to grow in very difficult circumstances.”
Andrew Goodacre, Chief Executive, British Independent Retailers Association said: “We have been concerned for some time about the rising costs of running a business. We therefore welcome this reversal of the NI increases as it will reduce the burden on employers as well as employees.
“Together with the recent energy support package, we hope the consumer confidence and business confidence return in readiness for the most important trading time of the year”.
REVERSAL OF THE HEALTH AND SOCIAL CARE LEVY: FACTSHEET
The government is committed to a low-tax, high-growth economy. To make sure people keep more of the money they earn and for businesses to have the right conditions to drive investment, growth and productivity.
The government is therefore cancelling the Health and Social Care Levy – initially introduced via a 1.25 percentage point rise in National Insurance contributions (NICs) – which took effect in April 2022.
This will be delivered in two parts:
The government will reduce National Insurance rates from 6 November 2022, in effect removing the temporary 1.25 percentage point increase for the remainder of the 2022-23 tax year;
The 1.25% Health and Social Care Levy will not come into force as a separate tax from 6 April 2023 as previously planned.
This tax cut reduces 920,000 businesses’ tax liabilities by £9,600 on average in 2023-24. This is 60% of the UK’s businesses with employer NICs liabilities.
It means 28 million people across the UK will keep an extra £330 a year, on average, in 2023-24.
We are making this change as quickly as possible, with it coming into force on 6 November.
How does cancelling the Health and Social Care Levy help spur growth?
This government’s central mission is to raise living standards for all in the UK through growing the economy through the private sector.
As a result of this tax cut, businesses will have more money to invest in becoming more productive, pay higher wages, create more jobs and support the overall growth of the UK economy.
Approximately 60% (920,000) of businesses with NICs liabilities will see a reduction their National Insurance bills, with 20,000 of these businesses taken out of paying NICs entirely due to the Employment Allowance, a relief which allows eligible businesses to reduce their employer National Insurance bills each year.
At Spring Statement, on 23 March 2022, the previous government announced this would be rising by £1,000 from £4,000 to £5,000, which means 40% of businesses with NIC liabilities do not pay NICs.
The average saving for businesses is £9,600 in 2023-24.
For small and medium businesses who see their NICs bills reduced, the average saving is £4,200 and £21,700 respectively in 2023-24.
The sectors benefitting most from the reversal are professional, scientific and technical; wholesale and retail trade, repair of motor vehicles and motorcycles; and construction.
When will people receive the extra cash?
Most employees will receive the cut in their November 2022 pay directly via their payroll.
Basic rate taxpayers will on average see a gain of approximately £75 in 2022-23 rising to £175 in 23-24. For higher rate taxpayers, these figures are on average approximately £300 in 2022-23 rising to £700 in 23-24. For additional rate taxpayers, the gain will be on average approximately £1,650 in 2022-23 rising to £3,890 in 23-24.
Due to the complexities of some payroll software systems, there will be some people who receive the cut backdated in December 2022 or January 2023.
Although individuals should contact their employer for refunds as a first port of call in all circumstances, there may be circumstances where individuals may need to apply to HMRC for a refund (for example, if their employer is no longer trading, or if an individual has moved roles and their previous employer has confirmed they are unable to issue a refund retrospectively themselves).
Will there be less funding for health and social care as a result?
The Levy and increased dividend tax was expected to raise approximately £13 billion a year to fund health and social care. Funding for health and social care services will be maintained at the same level as if the Levy was in place.
What does this mean for the self-employed ?
Self-employed people and company directors will pay a blended rate of National Insurance – taking into account the changes in rates throughout the year – when they submit their annual self-assessment return.
What is happening to income tax on dividends?
From April 2023 the government is reversing the 1.25 percentage point increase to the rate of income tax on dividends which took effect in April 2022.
This move is designed to support entrepreneurs and investors as we seek to raise living standards through economic growth.
Extra information
For more information on National Insurance click here.
