On 23 September 2022, the Chancellor set out our Growth Plan for Britain, focusing on boosting economic growth by cutting taxes for families and businesses.
The Energy Bill Relief Scheme will help to cut energy prices for businesses, charities and public sector organisations, such as schools and hospitals. The scheme will run for 6 months and cover energy used from 1 October 2022 to 31 March 2023.
From October, the Energy Price Guarantee will limit the price customers can be charged for energy. This means the typical household will now likely pay £2,500 for their annual energy use, a £1,000 saving.
This year’s 1.25% point rise in National Insurance and its replacement, the Health and Social Care Levy planned for April 2023, will be cancelled. A tax cut for workers, while freeing up cash for businesses to invest, employ and grow.
The planned Corporation Tax increase to 25% has been cancelled. The rate will stay at 19%, the lowest in the G20. This will support business investment and help economic growth.
Changes are being made to Universal Credit to encourage more people into work. This means more people who receive this benefit will have to: meet regularly with their work coach; take steps to increase their earnings; face benefits reductions if commitments aren't met.
From April 2023 the basic rate of Income Tax will be cut from 20p to 19p, helping working families keep more of their hard-earned cash. We will also abolish the 45p additional rate completely to attract global talent and incentivise enterprise.
New legislation to reform planning permission for major infrastructure projects. This will reduce unnecessary bureaucracy in the system and help drive growth for the UK economy. Over 100 sites have already been identified.
The government has agreement in principle with 38 areas to establish tax-cutting Investment Zones which will drive growth & unlock housing development. Work will also begin with Scotland, Wales and Northern Ireland to agree zones in these locations.
To support businesses to invest and grow, the Annual Investment Allowance will be permanently set at its highest ever level of £1 million from 1 April 2023. This will give 100% tax relief to businesses on their plant and machinery investments up to the level of £1 million.
The Company Share Option Plan (CSOP) limit allows businesses to offer employees share options worth up to £30,000. Now we’re doubling that to £60,000. This will encourage employers to offer more shares to their employees, so everyone can share in the success.
Alcohol duty will be frozen from February 2023. This is a tax cut worth £600 million & will save the consumer 7p on a pint of beer, 4p on a pint of cider, 38p on a bottle of wine, & £1.35 on a bottle of spirits. This will also help the hospitality industry bounce back.
Cutting Stamp Duty Land Tax, which will help more people to move, promote residential investment and boost first-time ownership. All alongside our housing supply reforms in today’s Growth Plan.
