Chancellor Kwasi Kwarteng will deliver a variety of economic measures today as the government introduces a mini-budget to tackle the cost of living crisis.
It is expected that Prime Minister Liz Truss will fulfil her promise of tax cuts alongside a reversal of the increase to National Insurance contributions which was expected to come into effect from November. While speaking to the press in New York, Ms Truss said that she is willing to take "difficult decisions" to help push economic growth across the country.
The economic plans will be unveiled in the House of Commons today at 9.30am as the Chancellor will speak to his fellow MPs. Today's announcement will be different from a usual Budget - which is made twice a year - and will not include any major announcements such as changes to fuel duty tax.
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By using the term 'mini-budget', the government can avoid publishing a statement from the Office for Budget Responsibility (OBR) - which provides an independent analysis of how much new policies will cost. Ms Truss told Sky News: "What we know is people on higher incomes generally pay more tax so when you reduce taxes there is often a disproportionate benefit because those people are paying more taxes in the first place.
"We should be setting our tax policy on the basis of what is going to help our country become successful – what is going to deliver that economy that benefits everybody in our country.”
Critics such as former Chancellor Rishi Sunak, have argued that the predicted tax cuts will force the government to borrow a high amount of money which will likely be paid back by taxpayers. Despite this, Ms Truss seems to believe that the tax cuts are essential in driving up economic growth and bringing more money in, potentially covering the amount of money borrowed.
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