Kwasi Kwarteng will vow to slash taxes as the Government seeks to address the living cost crisis (Picture: Getty)
Urgent plans to ‘break the cycle’ of the country’s spiralling economy will be announced today.
Kwasi Kwarteng will address the House of Commons at 9.30am.
The Chancellor is due to announce tens of billions of pounds both of increased spending and of tax cuts in his mini-budget, officially known as a ‘fiscal event’.
Mr Kwarteng will pledge to ‘turn the vicious cycle of stagnation into a virtuous cycle of growth’ as he sets out the new Government’s approach to the UK economy.
The statement is expected to include details of how the Government will fund the energy price cap for households and businesses, and put into practice many of Prime Minister Liz Truss’s tax-slashing promises.
The Government is dubbing it a ‘growth plan’ at a time when the UK faces a cost-of-living crisis, recession, soaring inflation and climbing interest rates.
Just yesterday, the Bank of England warned of a recession as interest hikes hiked to 2.25 from 1.75.
Mr Kwarteng is expected to tell the House of Commons: ‘Growth is not as high as it needs to be, which has made it harder to pay for public services, requiring taxes to rise.
As the cost of energy bills skyrocket – the nation faces a difficult winter (Picture: North News)
‘This cycle of stagnation has led to the tax burden being forecast to reach the highest levels since the late 1940s.
‘We are determined to break that cycle. We need a new approach for a new era focused on growth.’
He will speak of ‘difficult decisions’ needed to bring the economy back under control.
In his address, Mr Kwarteng will likely unveil the creation of low-tax, low-regulation investment zones in his mini-budget on Friday.
The Chancellor will pledge ‘a new era’ of growth today (Picture: Bloomberg via Getty Images)
The Government is also in talks with dozens of local authorities in England to set up zones.
The Chancellor is expected to tell the House of Commons: ‘The time it takes to get consent for nationally significant projects is getting slower, not quicker, while our international competitors forge ahead. We have to end this.
‘To support growth right across the country, we need to go further, with targeted action in local areas.
‘We will liberalise planning rules in specified agreed sites, releasing land and accelerating development.
The 38 areas in discussion to become an investment zone:
Bedford Borough Council
Central Bedfordshire Council
Cheshire West and Chester Council
Cumbria County Council
Derbyshire County Council
East Riding of Yorkshire Council
Essex County Council
Greater London Authority
Gloucestershire County Council
Greater Manchester Combined Authority
Hull City Council
Kent County Council
Lancashire County Council
Leicestershire County Council
Liverpool City Region
North East Lincolnshire Council
North Lincolnshire Council
Norfolk County Council
North of Tyne Combined Authority
North Yorkshire County Council
Nottinghamshire County Council
Plymouth City Council
Somerset County Council
Southampton City Council
Southend-on-Sea City Council
Staffordshire County Council
Stoke-on-Trent City Council
Suffolk County Council
Sunderland City Council
South Yorkshire Combined Authority
Tees Valley Combined Authority
Warwickshire County Council
West of England Combined Authority
West Midlands Combined Authority
West Yorkshire Combined …read more
Source:: Metro – News