We’re expecting some sort of mini-budget from Kwasi Kwarteng on Friday, with details about help for businesses and individuals.
What can we expect?
The chancellor is expected to confirm big announcements including a reversal of the National Insurance increase, scrapping the planned rise in corporation tax and removing green levies.
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While it may not be as comprehensive as ordinary budgets, this “fiscal event” will set the tone for the economic approach of Liz Truss’s government.
It will mark a big shift in strategy, with the focus now on tax cuts and growth.
Why isn’t it a budget?
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The announcement will lack the detail of a full budget, which would usually cover a broad range of economic policies, such as beer and cigarette duty and the price of petrol.
Ms Truss was criticised by some people for avoiding scrutiny when she said during her leadership campaign that her plans for big tax cuts would come without data from the Office for Budget Responsibility (OBR), which is needed for a budget.
Usually the Office for Budget Responsibility (OBR) provides this, but Truss’s staff said that economic forecasts were not necessary for what they called a “targeted fiscal event”.
The prime minister has been accused of downgrading her plans for an emergency budget.
Gemma Tetlow, chief economist at the Institute for Government, said that “what you call such announcements is irrelevant” and Ms Truss should ask for a new OBR forecast.
The OBR, an independent watchdog, previously said that it could write a report by Friday.
Liz Truss’s staff have indicated that a full budget will be presented later in the year.
