Government confirms plan for ‘mini Budget’ in September
While the initial announcement has been delayed due to the 10-day period of mourning following the death of Queen Elizabeth II, the government yesterday stated that the ‘mini Budget’ or so-called ‘ fiscal event’ was likely to take place this month.
The fiscal statement will fall short of a full budget but will give Prime Minister Liz Truss and new Chancellor Kwasi Kwarteng the opportunity to lay out the government’s plans for a series of major interventions to tackle the cost of living crisis and counter the threat of rising energy bills.
However, no date has been set and it will not be held in recess, the Prime Minister’s spokesman said.
Following the death of the Queen last week, parliamentary business has been postponed until after September 21, but parliament is due to rise for recess on September 22 with the house returning on 17 October.
The spokesman continued: “What we’ve said is that we are still planning to deliver a fiscal event this month. We wouldn’t do that in recess. Beyond that, we haven’t set out a date.”
He added that recess dates would have to be discussed with the speaker but there was no current plan to change them.
Kwarteng: Focus on growth
As part of the ‘event’, the Financial Times (FT) reported yesterday that Kwarteng had told the Treasury to focus “entirely on growth” and to “adapt to a new approach focused on boosting annual economic growth to 2.5 per cent”.
The FT went on to state that tax cuts would “be at the heart of the new government’s ‘fiscal event’”.
Late last week, yourmoney.com reported that Liz Truss had set out an energy price guarantee that would curb the average bill at £2,500 a year over the next two years.