Here are tweets from two thinktank leaders responding to the report saying Kwasi Kwarteng will cut stamp duty in the “emergency budget” on Friday. One is on the left, and the other is on the right, but there is considerable overlap in what they are saying.
These are from Torsten Bell, chief executive at the Resolution Foundation. He was a policy adviser to Ed Miliband when Miliband was Labour leader.
And Robert Colvile has posted a long thread on Twitter about stamp duty. It starts here and is worth reading in full. Covile runs the Centre for Policy Studies, and helped to write the Conservative party’s 2019 manifesto.
And here are his conclusions.
The Department for Business, Energy and Industrial has now published details of its energy support package for business. The department says:
Through a new government energy bill relief scheme, the government will provide a discount on wholesale gas and electricity prices for all non-domestic customers (including all UK businesses, the voluntary sector like charities and the public sector such as schools and hospitals) whose current gas and electricity prices have been significantly inflated in light of global energy prices. This support will be equivalent to the energy price guarantee put in place for households.
It will apply to fixed contracts agreed on or after 1 April 2022, as well as to deemed, variable and flexible tariffs and contracts. It will apply to energy usage from 1 October 2022 to 31 March 2023, running for an initial six-month period for all non-domestic energy users. The savings will be first seen in October bills, which are typically received in November.
As with the energy price guarantee for households, customers do not need to take action or apply to the scheme to access the support. Support (in the form of a p/kWh discount) will automatically be applied to bills.
To administer support, the government has set a supported wholesale price – expected to be £211 per MWh for electricity and £75 per MWh for gas, less than half the wholesale prices anticipated this winter – which is a discounted price per unit of gas and electricity. This is equivalent to the wholesale element of the energy price guarantee for households. It includes the removal of green levies paid by non-domestic customers who receive support under the scheme.
My colleague Graeme Wearden has more on this on his business live blog.
Good morning. Jacob Rees-Mogg, the business secretary, will this morning give details of the energy support package that will be available for businesses over the next six months. I will cover political reaction here, but my colleague Graeme Wearden will be leading on coverage of this on his business live blog.
In normal circumstances a government announcement of this kind, involving spending worth tens of billions, would be made to the House of Commons, where MPs would be able to quizz Rees-Mogg on the detail. The Commons is open today, but only for MPs to swear oaths to the new King. It is not having a proper sitting until tomorrow, and it is not clear why a full statement could not have been scheduled for today. This is the second time an energy support measure has been announced in a manner to minimise parliamentary scrutiny; when Liz Truss announced her energy price guarantee, she did it in the form of a speech at the opening of a debate, instead of a Commons statement, which would have allowed up to 100 or so MPs to ask a question about it.
But we are getting a Commons statement on Friday, when Kwasi Kwarteng, the chancellor, will unveil his “emergency budget” and this morning Steven Swinford and Henry Zeffman in the Times say that it will include a surprise cut to stamp duty, as well as the tax cuts already promised (the reversal of the national insurance increase, cancellation of planning corporation tax increases, and the temporary suspension of green levies on fuel bills). In their story – which is not being denied by No 10 – Swinford and Zeffman report:
Truss believes that cutting stamp duty will encourage economic growth by allowing more people to move and enabling first-time buyers to get on the property ladder …
Under the present system no stamp duty is paid on the first £125,000 of any property purchase. Between £125,001 and £250,000 stamp duty is levied at 2 per cent, £250,001 and £925,000 5 per cent, £925,001 and £1.5 million 10 per cent and anything above £1.5 million 12 per cent. For first-time buyers the threshold at which stamp duty is paid is £300,000.
During the pandemic the stamp duty threshold was increased temporarily to £500,000 to help to stimulate the property market. Truss has previously said that cutting stamp duty is “critical” to economic growth. As chief secretary to the Treasury she said that the highest rate of stamp duty, which was introduced by George Osborne, was “clogging up” the housing market and leading to fewer transactions.
Much later today Truss will give a speech to the United Nations general assembly. As Pippa Crerar reports in her preview, Truss will link her own low-tax economic philosophy to the cause of global freedom.
Here is the agenda for the day.
9am: Jacob Rees-Mogg, the business secretary, is due to announce details of the plan to cap energy prices for businesses.
From 10am: In the Commons MPs swear oaths of allegiance to the new King.
11.30am: Downing Street holds a lobby briefing.
Lunchtime (UK time): Liz Truss hosts a business roundtable meeting on economic growth in New York, where she is attending the United Nations general assembly.
Early evening (UK time): Truss holds various bilateral meetings in New York, including with Joe Biden, the US president, and Ursula von der Leyen, the European Commission president. She is also delivering a speech to the UN general assembly, but that will not happen until around 2am UK time.
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