Facts-Britain outlines tax cuts, other measures to boost growth

Facts-Britain outlines tax cuts, other measures to boost growth

LONDON (Reuters) – Britain’s new chancellor Kwasi Quarting unveiled a raft of measures on Thursday, including scrapping a payroll tax increase in a bid to boost economic growth.

He is expected to detail more measures in Friday’s mini-budget, including tax cuts, energy subsidies and planning reforms.

Here’s a brief overview of the major measures announced so far, and additional steps that could be announced on Friday.

Reverse payroll tax hike

The 1.25 percentage point increase in the payroll tax – or National Insurance – that took effect earlier this year will be reversed from November 6.

The dividend tax increase has been reduced

The increase in profit tax rates introduced along with the payroll tax increase – to increase contributions from those who are paid through various channels – will be eliminated from April 2023.

investment areas

Kwarteng on Friday is expected to say the government is in talks with 38 LGs in England to create investment zones that offer “generous, targeted and time-limited tax cuts” for businesses to create jobs and increase productivity.

Regions will also see environmental regulation reforms and simplified planning policies.

infrastructure projects

Kwarteng will also put in place measures to accelerate the delivery of about 100 major infrastructure projects including wind farms, roads and railways.

The measures will include legislation in the coming months to help reduce the “unnecessary burden” of infrastructure projects.

No increase in corporate tax

Britain’s 19% corporate tax rate – the lowest among the group of wealthy G7 nations – was due to rise to 25% in 2023, but Friday’s mini budget is expected to scrap those plans.

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stamp cutter

The Times reported Wednesday that stamp duties on home purchases will be lowered to boost economic growth by enabling first-time buyers to move up the real estate ladder.

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