Kwasi Kwarteng will unveil ’emergency budget’ for tax cuts next Friday after the Queen’s state funeral
- Kwasi Kwarteng will unveil the ’emergency budget’ in the Commons next Friday
- The fiscal event is being scheduled to happen soon after Queen’s state funeral
- Package is set to include the promised tax cuts and moves to boost business
- The Queen’s funeral: All the latest Royal Family news and coverage
Kwasi Kwarteng will unveil the ’emergency budget’ for tax cuts next Friday, it was confirmed today.
The Chancellor is preparing a package to be delivered on September 23 – when the Commons had originally been due to be in recess.
Politics has been largely put on hold during the 10-day period of mourning for the Queen, which lasts until her state funeral on Monday.
With Liz Truss then expected to make a trip to New York next week, the government has been left with a minimal window for the promised ‘fiscal event’ before the party conference season begins.
The perilous position of the UK economy was underlined this week with figures showing GDP virtually stalled in July, while inflation remains close to a 40-year high at 9.9 per cent.
Mr Kwarteng is due to give specifics of how the energy bill freeze will be funded at the ‘fiscal event’ on Friday next week
The perilous position of the UK economy was underlined this week with figures showing GDP virtually stalled in July
Last week Ms Truss announced long-awaited plans to tackle soaring energy bills, freezing prices for two years and declaring she will boost domestic energy supplies.
That included lifting the ban on fracking and new licences for North Sea oil and gas, as well as boosting nuclear, wind and solar.
Mr Kwarteng is due to give specifics of how the plan will be funded at the ‘fiscal event’, as well as fulfilling Ms Truss’s Tory leadership campaign pledges to cut taxes.
The Chancellor could also confirm whether the cap on bankers’ bonuses is being scrapped – something he is understood to think might be necessary to help the City compete with other financial centres.
The Commons was due to go into conference recess on September 22.
The Liberal Democrats have cancelled their party conference, which would have clashed with the Queen’s funeral.
Labour and the Conservatives are still set to hold their conferences, even if the annual events are likely to be more low-key than normal.
Under the Government’s ‘energy price guarantee’, bills for the average household will go no higher than £2,500 at any point over the next two years.
It will save a typical home around £1,000 from October 1, when the current consumer price cap had been set to soar, according to official estimates.
Passing legislation is not believed to be required to bring the price guarantee into effect for households, although businesses are still facing a wait for details about additional support.
‘There isn’t a date set for the business support element of the guarantee. Obviously we’re working that through. It hasn’t been impacted by the mourning period, as I understand,’ the Prime Minister’s spokesman said.
Last week Ms Truss announced long-awaited plans to tackle soaring energy bills, freezing prices for two years and declaring she will boost domestic energy supplies
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