Summary

  • In a massive shake-up of the UK's finances, Chancellor Kwasi Kwarteng unveils the biggest tax cutting moves in 50 years

  • The financial markets react badly, with the pound falling to a fresh 37-year low against the dollar

  • Kwarteng defends the measures, saying they are "exactly the right thing" to do

  • The basic rate of income tax is cut to 19p and the 45% top rate of tax for higher earners abolished - although this doesn't apply in Scotland

  • The threshold before stamp duty is paid in England and Northern Ireland is raised to £250,000 - for first time buyers it's £425,000

  • The cap on bankers' bonuses is lifted, and a planned rise in corporation tax scrapped

  • An increase in National Insurance is reversed, and low-tax investment zones will be set up across the UK

  • Labour's shadow chancellor says the plan "will reward the already wealthy" and will not help those struggling most with rising prices

Live Reporting

Edited by Dulcie Lee

  1. Will today's tax giveaway deliver growth?

    Dharshini David
    Global trade correspondent

    Mini-budget by name but not mini-budget by nature. Today's "fiscal event" is expected to deliver the biggest tax cuts - at least £30bn - since 1988 when Nigel Lawson was Chancellor.

    Around £15bn will come from a cut to National Insurance with the richest 10% of households set to gain 60 times as much as the poorest.

    But with the overall tax-take rising as the UK economy recovered from Covid and due to measures from previous chancellors, over 35% of the nation’s income is still set to go to HMRC over the coming years - the highest sustained level seen in the UK according to the Institute for Fiscal Studies think tank.

    Will today’s tax giveaway at least deliver growth? Economists say perhaps only marginally. It’s a gamble - with the nation’s cash.

  2. What are the papers saying?

    Newspaper front pages

    Many of the the front pages are looking ahead to the government's mini-budget today.

    "The biggest tax cuts for thirty years" is the headline in the Daily Mail, which says the plans aim to "drive down taxation, tackle high energy bills and curb inflation".

    According to the Guardian, among the 30 measures will be "new investment zones and an acceleration of infrastructure projects".

    The Financial Timessays the cap on bankers' bonuses will also be scrapped. While the Independent says environmental protections will be "torn up in huge swathes of the UK".

    The Daily Telegraph reports Chancellor Kwasi Kwarteng will also announce two "rabbits out of the hat", although it gives no more details. The Daily Mail speculates one could be a "1p cut in the basic rate of income tax next year".

    "Tax cut bonanza in bid to stop the economic rot" says the front page of the Times. Sources have told the paper the chancellor's tax cuts could cost £50 billion. It described the plans as a "gamble".

    In the Financial Times, Labour's shadow chancellor Rachel Reeves has criticised PM Liz Truss's economic plans, writing that her approach "is discredited and inadequate, and will not unleash the investment she claims".

    Read more here

  3. What did Truss promise during the leadership race?

    Conservative leadership candidate Liz Truss waves as she stands next to Conservative leadership candidate Rishi Sunak as they attend a hustings event in London.Reuters

    Liz Truss, with Rishi Sunak, during the Tory leadership race

    Liz Truss made a variety of economic promises as she ran for the top job, many of which were criticised by her rival, ex-Chancellor Rishi Sunak, as being unrealistic.

    Here’s a reminder of some of those pledges:

    • To reverse the National Insurance rise - already announced
    • To suspend green levies on energy bills - already announced
    • To create “investment zones” - hubs for innovation and enterprise - some details announced
    • To change taxes to make it easier for people to stay at home to care for relatives
    • Not to bring in any new taxes and to scrap a planned rise in corporation tax
    • To bring a target of spending 2.5% of GDP on defence forward to 2026 and introduce a new 3% target by 2030
    • To scrap or replace by the end of 2023 EU laws considered to be holding back the economy
    • To divert a greater share of healthcare spending towards helping with social care.

  4. What's happening today?

    Chancellor Kwasi Kwarteng, who is in charge of the public finances, will outline plans to cut taxes to try to boost the economy at 09:30 BST.

    It’s his first major speech as chancellor, and measures could include:

    • Reversing a recent rise in National Insurance - a tax workers pay on their earnings - from 6 November (this was confirmed yesterday)
    • Scrapping a planned increase in the amount of tax companies pay on their profits
    • Possible cuts to other taxes, including the stamp duty paid on house purchases
    • Ending the cap on bankers' bonuses
    • Tightening the rules around universal credit
    • Plans to boost economic growth, such as creating low-tax zones around the UK.

    You’ll be able to watch Kwarteng deliver his speech by pressing play at the top of the page.

  5. Truss to unveil plans to cut taxes

    Liz TrussPA Media

    Prime Minister Liz Truss promised tax cuts from “day one” if she won the keys to No 10.

    However, the first few days of her premiership looked different to how anyone would have expected, with the death of Queen Elizabeth II two days after Truss took office.

    The UK has since observed 10 days of national mourning. Now, the prime minister is beginning to push on with her plans.

    Today we’ll get an idea of what her economic policy will look like.

  6. Welcome along

    Kwasi KwartengReuters

    Hello and welcome to our live coverage as Kwasi Kwarteng prepares to deliver his first major speech as chancellor.

    At 09:30 BST, he’ll outline the government’s plans to boost the economy - at a time when living costs are spiralling and the UK faces the prospect of a recession.

    We’re also expecting to get more details about tax cuts promised by Prime Minister Liz Truss during the Tory leadership race over summer.

    We’ll bring you the latest throughout the day - and explain what it all means for you.