A mini-Budget is to be delivered on Friday, setting out what help is to be made available to get people through the winter and the cost of living crisis. Chancellor Kwasi Kwarteng will announce measures in Parliament on Friday that will confirm tax cuts promised by Liz Truss and spell out some of the detail on how the promised energy bills freeze will be funded.
Ms Truss is thought to be planning to borrow as much £150bn to fund her plan to cap average energy bills at £2,500 a year for two years. Further details are also expected on support for businesses.
During the Tory leadership campaign, Liz Truss promised to cut taxes from "day one". It won't quite be day one, reports The Mirror.
She has pledged to reverse April's 1.25 percentage point increase in National Insurance. Reports suggest this could take effect in people's pay packets this November.
She has also vowed to cancel the former Chancellor Rishi Sunak's planned rise in corporation tax from 19 per cent to 25 per cent in April 2023 - costing the Treasury billions.
Another pledge from the new Prime Minister involved scrapping the green energy levy on bills in an attempt to bring down the costs for struggling households.
The charge is added to energy bills to help fund investments in renewables, alongside environmental and social policies.
But IFS director Paul Johnson has described the policy as "somewhere between meaningless and pointless", suggesting it will only save households around £11 over the next three months.
Unlimited bonuses for bankers could once again be permitted as the new Tory government attempts to woo the City.
Chancellor Kwasi Kwarteng is weighing up scrapping a cap on huge bonuses. At the moment bosses are not allowed to award more than twice an employee's salary.
Reports suggest the mini-Budget will announce "special investment zones" in up to 12 UK areas. There is speculation the areas will be able to cut personal taxes, tear up affordable housing quotas, and even water down environmental pledges to get firms building.
They could include West Midlands, Thames Estuary, Tees Valley, West Yorkshire and Norfolk, according to the Sunday Times.
The mini-Budget is tipped to announce a series of tax reviews, something Liz Truss promised to target at families and business rates.
The Sunday Mirror revealed she wants to allow the transfer of all personal tax allowances between married couples and civil partners where one earns below the £12,570 tax-free threshold.
Currently a lower earner can “gift” £1,260 of allowance – saving £214 tax after adjustments - but that could rise tenfold.
During the Tory leadership campaign she didn't rule out lowering inheritance tax, despite the fact mainly wealthy estates pay it.
Reports suggest Rishi Sunak's plan to cut income tax in 2024 could be brought forward, but that this would only happen in a Budget later this winter. Treasury sources have declined to comment.
