Chancellor of the Exchequer Kwasi Kwarteng is expected to deliver his Emergency Mini Budget on 23 September when he will set out more detail on energy support and tax changes.
Prime Minister Liz Truss vowed to hold an ‘emergency Budget’ during the Conservative Party leadership race. Two days after becoming Prime Minister, Ms Truss announced she would introduce an Energy Price Guarantee (EPG).
The EPG means that from 1 October a typical household will pay no more than £2,500 per year for each of the next two years. It comes in addition to the £400 Energy Bill Support Scheme and also includes the temporary suspension of green levies.
The government said it will support all business, charities and public sector organisations with their energy costs this winter, offering an equivalent guarantee for six months.
How the EPG scheme will work for businesses which do not fall under the energy price cap has yet to be disclosed. This has led hundreds of companies to sign a letter urging the Chancellor to give further details.
The letter to Kwasi Kwarteng was signed by 300 companies and written by Kate Nicholls, the CEO of industry body UK Hospitality.
Nicholls welcomed the support that would be given to households but added: ‘Businesses must see action too, or more of the population will need direct support.’
The letter called for ‘urgent, substantial action’, including:
- a business rates holiday for all hospitality premises with no caps applied
- the deferral of all environment levies
- the reinstatement of a generous Time to Pay scheme from HMRC
- the reintroduction of a trade credit insurance scheme for energy.
Reversal of NIC increases
In the Mini Budget, the government is expected to confirm plans to reverse the recent rise in national insurance contributions (NICs), while the new Prime Minister has already said she would ditch a planned rise in corporation tax.
There is also speculation in the press that Mr Kwarteng could bring forward by a year the pledge, made by his predecessor Rishi Sunak, to cut income tax by 1% from 2024.
The date of the Mini Budget has yet to be officially confirmed, although multiple news outlets are reporting it will be held on 23 September. The dates available to the government are limited due to Parliament currently being suspended while the country is in a ten-day period of national mourning following the death of the Queen.
Ms Truss is also due at the UN General Assembly in New York this week, and the political party conference season begins on 24 September.
Keeping your clients informed
Mercia’s expert team will be watching and analysing all Budget statements made by the government this autumn. We will be providing a range of products so you can keep your clients up to date on the changes that affect them.