Mini-Budget Live Feed

This budget is fiscally reckless. It's Trussmoronics not Trussonomics. There has been no independent assessment or costing from the Office of Budget Responsibility. If you cut taxes while at the same time spending billions on energy subsidies, and just put the bill onto government borrowing, people will not spend their extra money because they know that the bill is coming further down the line. Extra government borrowing and higher bond yields crowd out growth and investment. Markets will lose confidence in UK assets, bond yields will continue to rise, and Sterling will continue to fall. Also, how will less stamp duty help first-time buyers when mortgage affordability is decreasing as interest rates go up? UK bonds have already reacted very negatively this morning. Are we going to have a sovereign debt crisis like Greece?

Introducing a cut to stamp duty 5 weeks prior to the deadline for help to buy deals is likely to see a mass surge of last minute sales, followed by a huge drop off after the deadline ends. It is irresponsible, populist politics that will likely see house prices increase further and decouple even more from income. It is likely to be the final push on the pump that sees the housing price bubble burst leaving recent first time buyers and purchasers in negative equity, whilst speculators swoop in on below market opportunities.

“The Government wants to create a nation of entrepreneurs and while the emphasis for today’s Mini-Budget was rumoured to be on reducing costs, there are some signs that the Chancellor is looking at the bigger picture to stimulate economic growth. That said, changes to Income Tax, National Insurance and Stamp Duty beg the question of how the Government is costing its plans. Today’s Mini-Budget has not been accompanied by forecasts from the OBR, so its impact on borrowing and economic growth are unknown. That’s something we need to have sight of. There’s not much in today’s Mini-Budget that will support small businesses. The 100% tax relief on plant and machinery will certainly help but there was bigger news in the major tax cuts, which will disproportionately benefit those that are less in need and though the Chancellor argued the merits of scrapping the cap of bankers bonuses, it does point to a distortion of priorities. Where are the measures to support small businesses in making investments for their growth in terms of skills or research and development? Making up 99.9% of UK businesses, SMEs are the backbone of a healthy economy and yet there is little to support them aside from reduced energy costs, marginal tax cuts and a promise of a simplified tax system."

From what I'm hearing from small businesses, these are the WRONG tax cuts. Nothing on business rates. Nothing on VAT. This looks to be a budget for bankers and big business. I hope, for the sake of the country, I'm wrong.

How is all of this going to be paid for? Fiscally, Friday was a phenomenal event yet the Government is not allowing the OBR to provide an independent forecast. This will worry currency markets, as we need foreign buyers of gilts to pay for these plans. Markets are clearly concerned and it may get worse. Bankers bonuses is more a message we are open for business. This would be better delivered by making the UK a Singapore of sorts, exactly what we needed to do in a post-Brexit world and attract more big businesses to HQ here. It's what made Dublin a big success for Ireland when it joined the Euro. Yet again, stamp duty is a misdirected use of the cash in the coffers. Why do we continually try to stimulate the housing market? Policy error I feel and people are now feeling the pinch with the Help to Buy schemes that people should have avoided at all costs. Focus on supply for god's sake. Reduction in tax for businesses and employees will be welcomed as will the capping on energy, especially for businesses who are seemingly getting 8-10x higher renewal quotes for their gas and electric and so today may get portrayed as a good day for the people of the UK. I have my doubts on that as we'll fully feel the pain in the next 1-3 years on plans announced today, namely higher inflation for longer and higher borrowing rates for perhaps the same period of time.

The cap on bankers' bonus being scrapped is the wrong decision at a time when inflation is spiralling out of control. This will push up inflation further as bankers' spend their money and will leave the 'ordinary' citizen worse off.

That is definitely an ambitious plan, buut we small businesses need immediate action, stability and reassurance so we can make long-term plans and shift out of survival mode. The price guarantee relief scheme for six month sounds promising, but what happens after? The uncertainty is still there, but the can has just been kicked down the road until the Spring.

Supporting businesses to give some certainty over costs is now key to help the economy. Businesses and individuals need to see concrete steps, not vague promises so they can plan ahead. The cap on energy prices will significantly help both business and consumer confidence. Along with other measures such as tax breaks and rolling back National Insurance and Stamp Duty changes it will hopefully provide a boost and more certainty that we will have money in our pockets at the end of the day. It’s all looking like a bold move.

Well, Liz Truss and Kwasi Kwarteng certainly delivered the tax-cutting budget they promised. The elephant in the room is, at a time of increasing interest rates, increasing energy prices and increasing inflation, where have they discovered the eternal forest of magical money trees? This budget is not so much take from the rich and give to the poor, it is give to everyone and saddle the next generation with the cost of financing it all. If Labour had made this budget, few would have been surprised, and Tory MPs would be frothing at the mouth.

Some great announcements for the housing market, if slightly short-sighted. First-time buyers will definitely be pleased with the changes to stamp duty. In my opinion the changes have been long overdue as house prices have soared. With the higher rate of tax being scrapped, it will be interesting to see what moves lenders will make in the coming months.

I'm all for tax cuts, as I'm sure many people are. In fact most people would happily pay no tax ever on anything, however that leaves us with a problem. How do we pay for all the vital services and critical national expenditure like defence and the NHS? This "mini budget" will certainly be welcome to many households and small businesses but I worry about our national debt. Surely this requires a massive reduction in government spending elsewhere and a big reduction in the civil service?

I finally felt the love from a Chancellor that understands that we small business owners aren’t simply trying to fleece the government by minimising our taxes, but are the companies that employ the most people. By helping us simplify things, the more money there is to spend, invest, grow, recruit and take home ourselves. Okay, the moves weren't radical, but I was pleased to hear about cuts in rates that have already rose (National Insurance by 1.25% from 6 October and Dividend tax reductions (likely from April 2023) freezing rates that we were expecting to increase (Corporation tax will remain at 19% in April 2023 too) and cuts in other areas (Income tax from next year, move over 45% rate and hello 19%).

Truss’ trickle-down economics is expected to translate to growth in domestic consumption and investment. These tax cuts were designed to spur private economic activity from high-income earners. This will relieve them at a crucial period when the country is taming severe runaway inflation and sterling is dropping to its lowest level in 37 years. UK employers will now get away with shouldering almost £9 billion in contributions after the reversal of the National Insurance hike set in April. In addition, the increase in the stamp duty threshold to £425,000 for first time home buyers will certainly jump-start market activity again as this accommodates buyers in the higher price range. The government is counting on the rich to save more and channel this into the banking sector, which can then lend more to households. However, taxpayers need to be aware of the imminent budget deficit from these policies since no windfall tax has been mentioned by Kwarteng.