Posted: Wed 21st Sep 2022
The new government is expected to announce tax cuts during a "mini-Budget" on Friday 23 September.
Enterprise Nation will provide coverage of the mini-Budget and what it means for small firms on 23 September. Follow us on Twitter at @e_nation for updates.
During the speech in Parliament at 9.30am on Friday, chancellor Kwasi Kwarteng is expected to announce the tax cuts promised by prime minister Liz Truss during the Conservative Party leadership campaign. That includes reversing April's 1.25% percentage points National Insurance increase and cancelling plans to raise Corporation Tax.
UPDATE 22/09/22: Kwasi Kwarteng has confirmed that the National Insurance increase will be reversed on 6 November.
A Treasury press release said that the mini-Budget will announce that the 1.25% point increase to income tax on dividends, that was also introduced in April 2022, will be reversed from April 2023.
I can confirm that this year’s 1.25% point rise in National Insurance will be reversed on 6th November.— Kwasi Kwarteng (@KwasiKwarteng) September 22, 2022
Its replacement - the Health and Social Care Levy planned for April 23 - will be cancelled.
A tax cut for workers. More cash for businesses to invest, employ and grow. pic.twitter.com/qssnBaNywK
He may also announce that the planned 1p cut in personal income tax will be brought forward from 2024 to 2023 and the speech is likely to include details on the creation of up to 12 low-tax, low-regulation investment zones where planning regulations will be relaxed and taxes will be cut.
The government has already announced that businesses' energy bills will be cut by around half for six months from 1 October. In the mini-Budget speech, Kwarteng will reveal how much that intervention, and the energy support for households, will cost the exchequer. Experts have predicted it will be around £100bn.
Earlier this month, Enterprise Nation outlined what the government should do to support small businesses.
The wishlist includes dealing with late payment, increasing procurement spending with small businesses, a VAT reduction and exporting help.
Enterprise Nation founder Emma Jones said:
"Small businesses are vital to future proofing the economy. With an increase in costs for all areas of business, start-ups and micro businesses are struggling to grow and flourish. The government must recognise that this is a risk to innovation and the economy now and into the future.
"Any package of support must safeguard businesses but also ensure start-ups, micro and small businesses have enough help with energy bills at the same time as struggling households."
Enterprise Nation will provide coverage of the mini-Budget and what it means for small firms on 23 September. Follow us on Twitter at @e_nation for the latest updates.