Kwasi Kwarteng will deliver his mini-budget next Friday. (Photo: JUSTIN TALLIS via Getty Images)
Kwasi Kwarteng will deliver his emergency mini-budget next Friday, it has been confirmed.
The new chancellor is expected to unveil the government’s plans to reverse the rise in national insurance and scrap the scheduled rise in corporation tax in an attempt to boost economic growth.
Her opponent, Rishi Sunak, described the policy as “immoral” and said it would send the rate of inflation even higher.
Plans to deliver the “fiscal event” within days of Liz Truss becoming prime minister were thrown into disarray by the Queen’s death and the period of national mourning.
Further adding to the confusion is the fact that parliament is due to go into recess for the party conference season at the end of next week.
However, it is understood that the government will submit a request to parliament for the recess to be shortened to make up for the time lost following the death of the Queen.
A separate announcement on the government’s plans to help businesses deal with soaring energy prices is also expected next week, possibly on Wednesday or Thursday.
Truss unveiled an energy price guarantee for household last week which will cap a typical household’s bill at £2,500 for the next two years.
The prime minister said an “equivalent” scheme will be put in place for businesses, but the details have still to be finalised and Downing Street yesterday admitted their support package could be delayed.
Kate Nicholls, the chief executive UK Hospitality, the trade body that represents the industry, said: “Any delay in the delivery of energy support could be a final, fatal blow for hundreds of hospitality businesses teetering on the brink of ruin. Many simply won’t survive if they have to wait until November for help.”
Meanwhile, Kwarteng is also considering lifting the cap on bankers’ bonuses in an attempt to make the City of London more globally competitive.
But Unite general secretary Sharon Graham said: “When millions are struggling to feed their families and keep the lights on, the government’s priority appears to be boosting the telephone number salaries of their friends in the City.”
This article originally appeared on HuffPost UK and has been updated.