Kwasi Kwarteng is expected to reverse the 1.25 per cent hike in national insurance and halt plans to increase corporation tax from 19 per cent to 25 per cent in April. The Chancellor and the Prime Minister have made growing the economy top priority and reducing the tax burden is central to the plan. Story by the Express
Mr Kwarteng is considering ripping up rules imposed by the European Union that restrict bankers’ bonuses to help drive growth in the City.
Annual pay-outs were limited to twice the salary level in the wake of the 2008 financial crisis.
Treasury insiders fear advantageous tax rates for bankers in Paris means London is losing out on talented workers.
They also want to take advantage of Brexit to shake-up the rules to make the UK the most attractive place for investment, with the United States and Asia more competitive currently.
Mr Kwarteng told City bosses last week: “We need to be decisive and do things differently” as he set out an “unashamedly pro-growth plan”.
City bosses say the cap means salaries have to be permanently pushed up to make up for lower bonuses, which means their fixed costs are higher regardless of performance.
Scrapping the limit during a cost of living crisis is politically difficult, with trade unions and Labour attacking the proposals for helping the wealthiest.
But Professor Len Shackleton, from the Institute of Economic Affairs, said there would be “no losers” from the move and the opposition is “just gesture politics”.
He said: “Kwasi Kwarteng should ignore the naysayers and just plough ahead with this. If you can’t deregulate in this area, you’re never going to be able to deregulate anything.” Continue reading: Lifeline for millions of Brits as Kwasi to unlock Brexit benefits with emergency budget