The newly appointed UK Prime Minister, Liz Truss, has stated that she will be announcing a package of emergency measures and policies for immediate support to get the UK “growing, working and building”.
Differing from a traditional Budget, these emergency measures to be announced this month will tackle the immediate economic challenges faced by the UK (a Budget is expected to be announced later in the financial year to cover the whole economy).
Much is expected from these emergency measures as the UK economy struggles under the cumulative pressures on households and businesses caused by the cost-of-living crisis and rising energy bills, as well as the ongoing impact of Brexit and Covid.
Liz Truss has stated two “bold aims” for her fiscal plan – to cut taxes and grow the economy.
Ideally, the fiscal plan will involve providing immediate cost of living support to households to tackle the surging energy costs, and a package of emergency tax cuts aimed at boosting economic growth and reducing inflation.
Liz Truss has already announced her intentions to reduce energy bills, of which there are 2 options being considered and that may be announced later this week:
- Setting a guaranteed unit price that businesses will pay for gas and electricity, or;
- A percentage or unit price reduction that all energy suppliers must offer firms
Liz Truss has confirmed a reversal of the NI increase (Health & Social Care Levy). Other changes may include scrapping the planned rise in Corporation Tax, suspending the Green Levy on energy bills, and new measures to support the NHS. Support to tackle the soaring energy bills are also due to be announced this week, as a matter of urgency.
Click here to read MHA Moore & Smalley’s latest tax commentary and review.
We recommend that you review your financial plans now.
Whatever measures are finally announced, our tax experts and sector specialists will be happy to help you adapt and reassess your financial plans in the light of any tax cuts and legislative changes arising from the fiscal announcements.
Contact your usual MHA representative at any time for guidance on the measures announced or get in touch using this form, and we will be happy to assist with any queries.
The “emergency measures” will have wide-ranging impacts on businesses. Find expert analysis of the measures announced right here on the MHA Hub.