Chancellor Kwarteng will look to quell fears during 'mini-budget', says UEA Prof.
It's widely predicted that it will include a range of tax cuts, in addition to targeted support
An economics professor at the UEA has told us that the new Chancellor, Kwasi Kwarteng will look to quell fears today, as part of the Government's 'mini-budget'.
It's widely predicted that it will include a range of tax cuts, in addition to targeted support to those struggling to pay rising energy bills.
With the UK in the midst of a cost of living crisis and on the brink of a possible recession.
It's already been confirmed that the 1.25% rise in National Insurance, will be reversed from November 6th. While a planned levy to fund health and social care, will also be scrapped.
"We have already had this safety net in terms of the energy cap for consumers"
Dr Mike Brock told us what else to look out for:
"We have already had this safety net in terms of the energy cap for consumers and we have already had other changes that have been coming in bit by bit. The really interesting one that we're all waiting to see is changes to tax levels and we're expecting to see some form of tax cuts, today".
"It's more to help us feel more secure in what is a cost of living crisis"
He went on to tell us why the Government is going ahead with tax cuts:
"The tax cuts that are being suggested, they are not designed to get us to rush out and spend loads of money. It's more to help us feel more secure in what is a cost of living crisis and give us more money in our payslips to be able to off-set those costs that we have to pay day in, day out".
"If you are going to cut taxes, it's to make people and businesses feel like they have got more disposable income, or there is less pressure on them. The idea behind that could be to get people to spend more money- that goes against the interest rate rise and that's because those two different announcements come from two different sections of society".