Chancellor Kwasi Kwarteng has unveiled measures to stimulate growth and cut taxes in the short term.
The measures included in Kwarteng’s mini-Budget include:
- 40 new Investment Zones, providing targeted tax reliefs for new businesses;
- Corporation tax rates will be frozen at 19%;
- The April 2022 rise in both employee and employer National Insurance rates will be reversed;
- The Annual Investment Allowance will be permanently set at £1m from April 2023;
- Beer, cider, wine and spirit duties will be frozen at their current levels from February 2023;
- Reducing the basic rate of income tax to 19% from April 2023.
In response, ACS Chief Executive James Lowman, said: “We welcome that the government’s plan aims to stimulate growth and incentivise investment by businesses. In the last 12 months local shops have invested £605m in improving services, making their businesses more sustainable, and creating secure local jobs.”
Earlier this week, the government announced the details of an Energy Bill Relief Scheme for businesses.
Lowman added: “The biggest issue facing local shops in recent months has been the cost of energy. The support being provided in the coming six months will act as a lifeline for thousands of businesses, but the government must continue to support local shops in 2023, especially the most vulnerable facing difficult decisions in the spring.”
