Prime Minister announces Mini-budget U-turn

Prime Minister Lizz Truss has today not only sacked Chancellor Kwasi Kwarteng but announced a U-turn on September’s Mini-budget.

In the PM’s statement, she said that the rate of corporation tax will rise from 19% to 25%, this is despite the Chancellor announcing that it would remain at 19% just a few weeks earlier.

Chris Bryce, Freelancer and Contractor Services Association’s (FCSA) Chief Executive, commented, “The reinstatement of CT increases may go some way to steadying the bond markets and reduce the cost of government debt, but the potential downside is that the UK becomes a less attractive place to do business on the world stage at a time when the economy clearly needs as much inward investment as it can get and business alone should not bear the burden of difficult economic times.”

Chris added, “It’s clear that this U-turn, alongside the earlier U-turn on dropping the 45% tax rate, has been forced upon the Prime Minister by the markets and her own party, but some of the measures previously announced could have been beneficial in overall terms.

“That the decision to U-turn has been made so quickly is concerning and destabilising – policy should not be made on the hoof and the old saying ‘act in haste, repent at leisure’ clearly applies.”

“As always I, and FCSA stand ready to work with Jeremey Hunt, the new Chancellor, Edward Argar, the new Chief Secretary to the Treasury, and other ministers towards ensuring finding fully compliant, practical and workable solutions to the issues.”

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