New Chancellor Kwasi Kwarteng has today announced a huge, multi-billion pound plan that the government hopes will spark growth in the economy as the cost of living crisis deepens.
Mr Kwarteng today confirmed controversial plans that include tens of billions of pounds of both increased spending and of tax cuts in his mini-bidget - also known as a fiscal event. He has been criticised for a package of measures that will benefit the richest - with moves to cut the top rate of tax and lift the cap on bankers' bonuses.
There were other controversial moves in Mr Kwarteng's announcement today, including a threat to cut people's benefits and dilute the rights of trade unions. We've rounded up the key announcements below.
Income tax cut - including top rate
In her Tory leadership bid, Liz Truss said her top priority was cutting taxes. Today Kwasi Kwarteng today confirmed an income tax cut of 1p.
The Treasury announced: "From April 2023 the basic rate of Income Tax will be cut from 20p to 19p, helping working families keep more of their hard-earned cash.
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But in a surprise move, Mr Kwarteng also abolished the top rate of income tax in a boost for the right. He told MPs he was getting rid of the 45p top rate, replacing it with a 40p rate.
Reversal of National Insurance rise
The Chancellor confirmed widespread reports that a recent rise in National Insurance - a tax people pay in their earnings - will be reversed from 6 November.
Former Chancellor Rishi Sunak increased National Insurance by 1.25p in the pound in April - saying the money would fund health and social care. Liz Truss’s government says that funding will now come from general taxation.
A planned rise in corporation tax rise will also be cancelled and remain at 19%, Mr Kwarteng confirmed.
Benefit sanctions
In a highly controversial move, the Chancellor announced plans to sanction unemployed people in the country who fail to take "active steps" to seek work.
Kwasi Kwarteng said: "We need to encourage people to join the labour market, we will make work pay by reducing people's benefits if they don't fulfill their job search commitments. We will ask around 120,000 more people on Universal Credit to take active steps to seek more and better paid work or face having their benefits reduced."
Bankers bonuses
Mr Kwarteng today announced a huge boost to millionaire bankers by scrapping a cap on massive bonuses handed out by City bosses.
Announcing his mini-budget, Chancellor Kwasi Kwarteng opened the door for unlimited payments to be dished out again. Under rules brought in after the 2008 financial crash, bonuses are limited at double an employee's salary.
Mr Kwarteng said: "A strong UK economy has always depended on a strong financial services sector. We need global banks to create jobs here. All the bonus cap did was push up the basic salaries of bakers or drive activity outside Europe. It never capped total remuneration so let’s not sit here and pretend otherwise.
He confirmed: “We are going to get rid of it.”
New union restrictions
In another blow to workers, Mr Kwarteng today announced new restrictions on unions and workplace rights.
He said: "At such a critical time for our economy it's simply unacceptable that strike action is disrupting so many lives. We will legislate to require unions to put pay offers to a member vote to ensure strikes can only be called once negotiations have genuinely broken down.”
Stamp Duty cut
As expected, the Chancellor today confirmed a stamp duty cut. This is a tax you pay when buying a property. How much you pay depends on the property price and whether you are a first-time buyer or now.
In England and Wales, you pay stamp duty on properties worth over £125,000 if this is your main residence - or £300,000 if you're a first-time buyer. The Chancellor said this threshold will rise to £250,000 or to £425,000 for first-time buyers.
He said: "On purchases of land and buildings for commercial or new residential developments there'll be no stamp duty to pay whatsoever."
Cutting stamp duty does mean property buyers and home movers could save thousands of pounds - but as The Mirror reports, experts have warned that such a drastic measure could also “do more harm than good”.
Introducing a temporary stamp duty holiday during the Covid pandemic was largely blamed for pushing up house prices as buyers rushed to take advantage of the tax cut. There are also fears that a cut to stamp duty could mean many first-time buyers become even more priced out of purchasing their first home, if it pushes up demand further.
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