Facts

On September 23rd 2022 newly appointed Chancellor of the Exchequer announced his ‘mini-budget’. Some key points from the mini-budget were:

• Removal of the 45% tax bracket for those earning more than £150,000

• Scrapping the cap on bankers bonus’

• Scrapping a previously planned increase in corporation tax from 19% to 25%

• No stamp duty to pay on the first £250,000 of a property's value, increased from £125,000.

In his announcement Mr Kwarteng said “Fiscal responsibility remains essential for economic confidence, and it is a path we are committed to.”

There has never been such a large permanent increase in borrowing proposed by any government in British history. Nor was it responsible to sack Tom Scholar, permanent secretary at the Treasury, a few weeks ahead of the “mini-budget”. 

Kwarteng made his announcement without getting his figures costed by the Office of Budget Responsibility. He went on to say “The Office for Budget Responsibility will publish a full economic and fiscal forecast before the end of the year, with a second to follow in the new year”

Verdict

Deranged. 

Kwasi Kwarteng’s “fiscal event” was greeted with horror by financial markets which viewed it as the fiscally irresponsible budget statement in recent British history.

We emailed Kwasi Kwarteng’s office offering him the chance to respond. The email was received, but no reply.