What is the mini-budget?
Chancellor Kwasi Kwarteng will release a mini-budget on Friday along with National Insurance and corporation tax cuts.
Cuts to other taxes such as stamp duty are also expected to be announced as the government tries to limit the impact of the rising energy bills on households.
Experts are expecting it to be the biggest tax-cutting event in 34 years.
Labour have said funding these tax cuts by borrowing would leave the working people paying more for longer.
But the government hopes the tax cuts will boost the economy, increase its revenue and prevent a massive increase in the national debt.
Labour said funding these tax cuts by borrowing would leave people paying more for longer.
What could be in the mini-budget?
The government have already announced they are dripping the National Insurance hike that was due to come in, meaning people could keep more of their earnings.
Other measures include:
- scrapping a planned increase in the amount of tax companies pay on their profits
- possible cuts to other taxes, including stamp duty which is paid on house purchases
- ending the cap on bankers’ bonuses
- tightening the rules around universal credit
- plans to boost economic growth, such as creating low-tax zones around the UK
The announcements will be made by Chancellor Kwasi Kwarteng, and the tax-cutting plans under consideration could cost at least £30bn.
