Chancellor Kwasi Kwarteng has announced a raft of measures designed to stimulate the economy and release the “enormous potential” of the country.
In the mini budget he has cut the basic rate of income tax to 19p and axed the 45% top rate of tax for higher earners.
The threshold before stamp duty is paid in England and Northern Ireland has been raised to £250,000 – for first time buyers it’s £425,000. He has also jettisoned the planned rise in corporation tax.
National Insurance contributions increased by 1.25% in April 2022. This has now been reversed.
The National Franchised Dealers Association (NFDA) welcomed the move on National Insurance.
NFDA CEO Sue Robinson said: “The reversal of the National Insurance contribution is welcomed by NFDA and its members.
“By reducing this additional cost to employers and employees, it helps improve automotive retail business’s ability to attract talent and best tackle the staff shortages our industry is currently facing.”
The Chancellor also unveiled today that the proposed corporation tax hike from 19% to 25%, announced early this year by the then Chancellor Rishi Sunak, would be reversed.
“Scrapping the proposed corporation tax hike is an encouraging move for businesses across the automotive retail sector, helping reduce the tax liabilities of firms during a period of time where finances are stretched. This is a positive move and one which NFDA has urged government to consider in the past. “
Robinson also welcomed the Energy Bill Relief Scheme announced earlier.
Government’s Energy Bill Relief Scheme and the support given to homeowners and businesses alike is encouraging