Cookie Consent

By clicking “Accept”, you agree to the storing of cookies on your device to enhance site navigation, analyse site usage, and assist in our marketing efforts. View our Privacy Policy for more information.

The Mini Budget and what you need to know

Kwarteng's Mini-Budget at a glance: here's everything you need to know from today's announcement

Georgiana Campbell
September 23, 2022
3
min read
Share this:

Chancellor Kwasi Kwarteng has unveiled a mini Budget (fiscal event, if you like) as the UK faces the prospect of a recession. He outlined three key steps: the energy price guarantee, equivalent support for businesses and an energy markets financing scheme delivered by the Bank of England.

The Mini Budget and what you need to know

Here’s a summary of what’s to come.

Energy support scheme

  • There will be a freeze on energy bills, with hopes this will reduce inflation by 5 percentage points
  • The government’s energy support scheme is expected to cost £60bn for the six months from October

Public finances

  • The government will expand the supply side of the economy through tax cuts to target economic growth of 2.5% per year
  • Costings are yet to be published
  • The Office for Budget Responsibility will publish a full economic and fiscal forecast before the end of the year

Tax cuts

  • Next year’s increase in corporation tax from 19% to 25% will be cancelled, remaining at 19%
  • Reversing the tax rise will put £19bn a year back into the economy
  • The Office of Tax Simplification (OTS) will be winding down
  • Planned increases in duty rates for beer, wine and cider will be cancelled
  • VAT-free shopping for overseas visitors

Benefits

  • Rules around universal credit will be tightened, reducing benefits if people don't fulfil job search commitments
  • Jobseekers over 50 to be given time with work coaches to help them return to the job market

Income tax

  • The higher rate 45% band of income tax will be removed
  • The basic rate of income tax will be cut from April 2023 from 20% to 19%
  • The year's national insurance increase will be cancelled from 6 November

Stamp duty

  • To be cut for property buyers in England and Northern Ireland
  • No stamp duty on the first £250,000. This rises to £425,000 for first home buyers
  • This will be permanent, effective from today

Banking bonuses

  • With plans to ‘reaffirm’ the UK as a leading financial centre, the bankers’ bonus cap will be scrapped.
  • A package of regulatory reforms are the set out in the coming months

Infrastructure and investment planning

  • 38 investment zones will be created with tax breaks for businesses, including the Tees Valley, West Midlands, Norfolk and the West of England
  • Tax cuts and liberalised planning rules to be offered to release land for housing and commercial use
  • Investment zones offered measures such as no business rates and stamp duty waived
  • Plans to streamline regulations and remove EU-derived laws will be brought forward, with a key list of infrastructure projects ‘prioritised for acceleration’.

Union strikes

  • The government will legislate to tackle ‘militant trade unions’ from closing down key infrastructure through strikes.
  • The proposed laws will mean unions have to put pay offers to a member vote, to ensure strikes can only be called once pay talks have genuinely broken down

Well, that's a lot to take in! As a small business owner, you might be wondering how you can prepare yourself for these changes. Whether your funding needs are big or small, temporary or ongoing, invoice finance could be the answer.  Why wait for invoices to be paid? With a Kriya Lending facility, you could get up to 90% on day 1 with a voice of a monthly rolling or annual subscription.

You can learn more about invoice finance and its uses on our website, or apply today by clicking here.

If you have any questions, our incredible Portfolio Team (pmteam@kriya.co) is happy to assist.

Your Kriya Payments story starts here

Please fill out the form and a member of our team will be in touch

Your Kriya Lending story starts here

Please fill out the form and a member of our team will be in touch

Your Kriya story starts here

Please fill out the form and a member of our team will be in touch

Explore related posts

UK Embedded Finance Index 2022

New Research: UK Embedded Finance Index 2022

New Kriya research shows high levels of awareness of Embedded Finance among UK B2B SMEs. But with implementation intent being 3 years on average, this means thousands of UK firms are leaving money on the table.

Kriya Team
2
 min read
Read more
cost-of-living-tools

The underrated financial tool to get you through tougher times

How invoice finance can help B2B businesses manage their finances during the cost of living crisis

Georgiana Campbell
5
 min read
Read more
Everything you need to know about invoice finance

Everything you need to know about invoice finance

We know a thing or two about it so here’s our refresher about the wonderful world of invoice finance.

Georgiana Campbell
5
 min read
Read more