Chancellor Kwasi Kwarteng unveils tax cuts
23 September 2022
Chancellor Kwasi Kwarteng has unveiled the biggest package of tax cuts in 50 years, as he hailed a "new era" for the UK economy.
Mr Kwarteng said a major change of direction was needed to kick start economic growth and high tax rates "damage Britain's competitiveness", reducing the incentive to work and for businesses to invest.
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The Chancellor announced next year’s increase in corporation tax from 19% to 25% will be cancelled, stating it will put £19bn a year back into the economy, which companies will be able to use to "reinvest, create jobs, raise wages, or pay dividends which support our pensions".
The FDF chief executive Karen Betts said:
“Our industry welcomes the range of measures set out in the Chancellor’s mini-budget today – from the cancellation of the planned rise in corporation tax to a higher annual investment allowance and the creation of new investment zones. The Chancellor’s proposals will help our sector to focus on growth, investment and competitiveness, and to stimulate opportunities at food and drink manufacturing sites in every town, city, region and nation of the UK.
If these measures are combined with the simplification of regulation in our sector, or deregulation where that’s needed, then this change in the direction of economic policy will create real opportunities. It’s not yet clear to us if the government will be willing to look at some of the costly and burdensome regulation in our sector with a genuinely critical and deregulatory eye.”