Kwasi Kwarteng today pledged to “turn the vicious circle of stagnation into a virtuous circle of growth” by outlining the new government’s approach to the The British economy in the mini-budget.
The planned increase in alcohol taxes must be frozen for another year.
Reforms to modernize alcohol taxes will also be brought forward and the government has announced that it will publish a consultation on these plans.
The Chancellor said: “Our drive for modernization also extends to alcohol rights. I have listened to industry concerns about ongoing reforms. I will therefore introduce a transitional measure of 18 months for excise duty on wine.
“I will also be extending draw relief to cover small kegs of 20 liters and above, to help small breweries. And, in this difficult time, we are not going to let alcohol duty rates increase in accordance with the RPI.
“I can therefore announce that the planned increases in duty rates for beer, cider, wine and spirits will all be cancelled.”
Economic growth is not an academic term with no connection to the real world – it means more jobs, higher wages and more money for the public services we all use.
— Her Majesty’s Treasury (@hmtreasury) September 23, 2022
The Chancellor also said VAT-free shopping would be introduced for foreign visitors.
Changes to Stamp Duty Reduction and Universal Credit Announced
The new Chancellor, speaking in the House of Commons this morning, said stamp duty changes would mean that an additional 200,000 people would now avoid having to pay the tax.
Mr Kwarteng said: “Home ownership is the most common way for people to own property, giving them a stake in the success of our economy and society.
“So to support growth, increase confidence and help families who aspire to become homeowners, I can announce that we are reducing stamp duty. Under the current system, there is no stamp duty to be paid on the first £125,000 of a property’s value We double that – to £250,000.
Changes have also been made to Universal Creditwhich means applicants will have to work harder to find work.
The change means that more people who receive the benefit will have to meet regularly with their work coach, take steps to increase their income and will face benefit cuts if commitments are not met.