Mini Budget still planned for this month, No 10 says

  • Published
Kwasi KwartengImage source, Reuters
Image caption,

Chancellor Kwasi Kwarteng is due to deliver a "fiscal event" this month

No 10 says a mini Budget to deliver tax cuts promised by Liz Truss will still take place this month, despite the death of the Queen.

Parliament has been suspended due to an official period of mourning, raising questions over whether the "fiscal event" might be delayed.

The new PM has vowed to cut taxes to boost the economy and help people with rising living costs.

The government could also give details on the cost of last week's energy plan.

A date for the mini Budget has not been announced but is likely to be the end of next week.

MPs are scheduled to begin a three-week break for party conferences after that, unless the dates for this are changed.

The Lib Dems have cancelled their conference, which fell during the official mourning period, but the Labour and Conservative Party gatherings - taking place afterwards - are expected to go ahead.

The government has not given an estimated cost for its plan, unveiled last week, to limit energy price rises, meaning a typical household energy bill would cost around £2,500 annually until 2024.

The plan, announced just hours before news of the Queen's death, could cost up to £150bn.

During her campaign for the Tory leadership, Ms Truss promised to undo the rise in National Insurance under her predecessor Boris Johnson.

She has put the reversal at the centre of a "bold" package of tax cuts that she says are required to boost the UK economy and stop a recession.

She has also argued the cuts will help households, at a time when living costs are rising because of 40-year-high inflation.

In addition, she has also said she will use the mini Budget to temporarily scrap green levies on energy bills, in a bid to bring down prices for consumers.

Treasury boss sacking

It's understood that on a call to Treasury officials, new Chancellor Kwasi Kwarteng made it clear they should prepare for a change of direction.

A source with knowledge of the call confirmed a report in the Financial Times, external that he said the department need to focus on growing the economy, to meet a target to return growth to 2.5% a year.

It follows the sacking of the Treasury's top official, Sir Tom Scholar, within days of Mr Kwarteng taking office.

The move has been seen as part of a pledge by Ms Truss to change "Treasury orthodoxy" - but has been criticised by two former heads of the civil service.

Meanwhile, Downing Street has confirmed that some new ministers are yet to be appointed because of the Queen's death last week.

The prime minister's official spokesman said the "vast majority" of appointments had been made but there were "still a small number" remaining.

He added these would not be done during a 10-day official mourning period, but would take place "in due course".

All Cabinet and senior roles have been filled, with Ms Truss rewarding key allies with top jobs and culling prominent backers of her leadership rival Rishi Sunak.