5:49 am, September 24, 2022
Tax cuts ‘not a gamble’ amid hostile reception
Chancellor Kwasi Kwarteng has denied suggestions he is gambling with the UK economy and insisted the biggest raft of tax cuts for half a century were ‘absolutely fair’ as his mini-budget faced a hostile reception.
The Institute of Fiscal Studies (IFS) said he was ‘betting the house’ by putting government debt on an ‘unsustainable rising path’.
The respected financial think tank’s scathing assessment said only those with incomes of over £155,000 will be net beneficiaries of tax policies announced by the Conservatives, with the ‘vast majority of income tax payers paying more tax’.
During a visit to a factory in Kent on Friday, Kwarteng told reporters: ‘It’s not a gamble.’
‘Only the very richest’ will see incomes grow
The Chancellor’s huge package of personal tax cuts amid a cost-of-living crisis will do nothing to stop more than two million people falling below the poverty line, according to a think tank.
Analysis of Kwasi Kwarteng’s fiscal statement by the Resolution Foundation said ‘only the very richest households in Britain’ will see their incomes grow as a result of the most significant tax cuts in 50 years.
The richest five per cent will see their incomes grow by two per cent next year (2023-24), while the other 95 per cent of the population will get poorer as the cost-of-living crisis continues.
Markets plunge in ‘worst day ever’ after mini-budget
The pound and London stock market plunged in what one analyst called ‘the worst day I have ever seen’ after the Chancellor revealed his mini-budget.
Sterling repeatedly fell to new 37-year lows against the dollar during the day, slowly edging towards its all-time trough. At its lowest point on Friday £1 could buy just 1.0896 dollars – the worst exchange rate for Britons since 1985.
London’s top index fell below the 7,000-point mark for the first time since mid-June during Friday’s trading. At its trough, the index was trading down 2.5 per cent at 6,981.5 points, its lowest since March when the market had plummeted after a nuclear power plant caught fire in Ukraine.
Retail bosses hail return of tax-free shopping
Retail bosses have welcomed plans to reintroduce tax-free shopping in the UK for global tourists.
The Chancellor said the government will consult on a new tax-free shipping scheme for Great Britain and modernise the existing scheme in Northern Ireland.
The scheme will allow tourists to be refunded VAT on goods bought at UK airports and high street shops when they take it back home.
UK Travel Retail Forum chairman Nigel Keal said: ‘This is a fantastic announcement.’
Sinking value of the pound ‘adds £5 to tank of petrol’
Drivers are paying an extra £5 for a tank of petrol due to the fall in the value of the pound, according to new analysis.
Pump price savings from the cost of oil dropping back to where it was before Russia invaded Ukraine are being ‘severely undermined’ by the weakness of sterling, the AA said.
The motoring organisation calculated that the price of petrol at UK forecourts would be ‘at least’ 9p per litre cheaper if the pound had maintained its mid-February value of 1.35 US dollars, instead of this week’s level of 1.14 US dollars, which was a 37-year low.
Kwarteng happy to ‘engage’ over fuel duty cut
Kwasi Kwarteng said he is happy to ‘engage’ with a call to cut fuel duty.
Conservative MP Robert Halfon, a long-time campaigner for lowering fuel duty, asked the Chancellor if at the next budget he could ‘please do everything he can to cut fuel duty’.
Kwarteng replied: ‘I’d be very happy to engage my right honourable friend on that.’
200,000 more people a year ‘will be lifted out of paying stamp duty’
Housing market activity could be boosted after the ‘nil rate’ stamp duty band was doubled from £125,000 to £250,000.
But more demand could also mean higher house prices, unless there is a significant increase in the supply of homes, experts said.
Around 200,000 more people every year will be lifted out of paying stamp duty, the Government calculated. First-time buyers, who already paid no stamp duty on the first £300,000 of the price of a property, will see the threshold raised to £425,000.
UK ticket-holder scoops £171m EuroMillions jackpot
A UK ticket-holder has won more than £171m with the EuroMillions jackpot, National Lottery operator Camelot has said.
The lucky ticket holder bagged a prize of £171,815,297.80.
The winning numbers from Friday’s draw were 14, 15, 22, 35 and 48. The Lucky Star numbers were 03 and 08.
Friday’s Car Dealer headlines you may have missed
- Mini budget: Car dealers who earn more than £150k will see boost as Chancellor cuts higher tax rate
- Car garages may need even more help with their energy bills
- Survey finds majority of electric car owners are unhappy with public charging infrastructure
- Tesla to recall over a million cars because windows can pinch fingers
- Used car profit margins remain strong despite cost-of-living crisis
- Honda announces plans to slash production as concern remains over supply chain issues
King Charles pictured with red box for the first time
King Charles has been pictured with his red box for the first time.
The image, taken last week, shows the King carrying out official government duties in the Eighteenth Century Room at Buckingham Palace.
Red boxes contain papers from government ministers in the UK and the realms, as well as Commonwealth representatives.
Putin’s war lie is increasingly ‘threadbare’ to Russians
Vladimir Putin’s lie that the war in Ukraine is a ‘special military operation’ is becoming increasingly ‘threadbare’ to the Russian population, Western officials have said.
The Russian president’s order for partial mobilisation on Thursday, estimated to be for about 300,000 trained personnel like veterans and reservists, has sparked a wave of protests and people fleeing the country.
Western officials said yesterday that the announcement is likely to cause political problems in Moscow, has the potential to dent support for the war across Russian society and contribute to the ‘very poor morale’ among troops.
One official said Russia has ‘effectively exhausted the pool of willing volunteers’ to fight in Ukraine.
Evidence found of war crimes committed in Ukraine
Experts commissioned by the UN’s top human rights body to look into violations in Ukraine said their initial investigation has turned up evidence of war crimes.
Members of the Commission of Inquiry on Ukraine, mandated by the Human Rights Council earlier this year, have so far focused on four regions – Kyiv, Chernihiv, Kharkiv and Sumy.
Presenting their most extensive findings so far, they cited testimonies by former detainees of beatings, electric shocks and forced nudity in Russian detention facilities, and expressed grave concerns about executions in the four regions.
Made.com considers job cuts and company sale after trading woes
Online furniture firm Made.com is reviewing potential job cuts and a possible sale after the business was hammered by a slump in consumer spending as well as supply chain disruption.
The company told shareholders yesterday it is conducting a ‘strategic headcount review’ as part of a broader review as it seeks to slash costs.
It follows reports by the Financial Times that the business could axe up to 35 per cent of its 700-strong workforce.
Weather outlook
Today, Scotland and N Ireland will be dry with sunny spells throughout. England and Wales will have a mixture of sunny spells and scattered showers for many. Showers will ease by the evening.
Tonight most of the UK will see dry and clear conditions. The south-eastern coast will see a few daytime showers lingering. As the night progresses, thicker cloud will build into the north-west.
Tomorrow will be cloudy in the north-west, with a band of rain moving across Scotland and Northern Ireland later in the afternoon. Staying largely dry with spells of sunshine in England and Wales.
