Tax-cutting mini Budget to be unveiled on Friday next week

The so-called 'fiscal event' was promised by Prime Minister Liz Truss as part of her plans to grow the economy and tackle soaring inflation.

Tax-cutting mini Budget to be unveiled on Friday next week No10 Downing St

The much-anticipated mini-budget setting out details of help for households and businesses amid the cost-of-living crisis will be delivered by the chancellor next Friday.

The so-called “fiscal event”, promised by Prime Minister Liz Truss as part of her plans to grow the economy and tackle soaring inflation, will be announced by Kwasi Kwarteng on September 23, the STV News understands.

The timing had been highly constrained, with Parliament currently suspended while the country is in mourning following the death of the Queen, and the Prime Minister expected to fly to New York for the United Nations General Assembly following the monarch’s funeral on Monday.

The Commons will also enter recess at the end of next week to allow for party conferences to take place.

The Government is expected to soon confirm its intention to reduce the planned recess, with the current period of mourning meaning that a request cannot yet formally be made to Parliament.

A separate announcement on an energy package is also expected next week, possibly on Wednesday or Thursday.

Truss promised the fiscal event during the Tory leadership campaign, as concerns grew over rising energy bills and the expectation of a difficult winter for households.

Her bid to become Prime Minister won over grassroots members with promises of tax cuts and a pledge to put a stop to the planned rise in corporation tax.

The mini-budget follows in the wake of an unprecedented multibillion-pound package to tackle sky-high energy bills and ease the cost of-living crisis, with a focus on capping prices and boosting domestic energy supplies.

Under the “energy price guarantee”, bills for the average household will go no higher than £2,500 at any point over the next two years.

It will save a typical home around £1,000 from October 1, when the current consumer price cap had been set to soar, according to official estimates.

The news of the multibillion-pound package was immediately overshadowed by the death of the Queen, leaving many outstanding questions about how it will be funded and what other measures might accompany it.

Some charities have also called on the Government to go further and offer more support to vulnerable households, many of whom are already struggling with the price of bills.

It is expected that alongside fresh measures to tackle the cost-of-living crisis and boost growth, Mr Kwarteng will set out how the mammoth energy package will be paid for.

Business leaders have expressed concern in recent days about the lack of clarity over the equivalent support for companies, which are also struggling with rising bills.

Downing Street has promised that more details about the support will come next week alongside a pledge to backdate energy costs for businesses if there is a delay in getting the complex new scheme off the ground.

Sir Lindsay Hoyle, the Speaker of the House of Commons, earlier told Times Radio that it was his “expectation” and “hope” that the conference break will be slimmed down.

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