Lewis Goodall@lewis_goodall
Sep 23, 2022
26 tweets
Chancellor Kwasi Kwarteng on his feet for statement
Starts on energy- reaffirms govt plans on energy for consumers and business
Confirms 100% backed govt loans to energy companies for “emergency liquidity”
“Let no one doing this govt is on the side of the British people”
This is for the markets: "this govt considers the Bank of England's independence to be sacrosanct."
Says that BoE acting on inflation. Yet clear govt and Bank not acting in concert.
Kwarteng says UK govt's aim is 2.5% trend growth- not exceptional by historic standards but certainly greater than much of the last decade.
Kwarteng says "in due course" the govt will set out a plan to reduce the debt in a sustainable way "fiscal responsibility remains essential for economic confidence and it is a path we are committed to."
Kwarteng says cost of energy package is uncertain due to international prices but estimate is £60bn to March. Just under total cost of furlough.
Kwarteng says proposals coming from ministers on: planning, business regulations, childcare, immigration, agricultural productivity and digital infrastructure.
For the avoidance of doubt this is extraordinarily expensive. twitter.com/lewis_goodall/…
Lewis Goodall@lewis_goodall
Sep 23 22
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Kwarteng says cost of energy package is uncertain due to international prices but estimate is £60bn to March. Just under total cost of furlough.
every Chancellor for the last 10 years has said that planning system is too cumbersome and then the politics never allows really major reform. If they're serious about it then it's a huge test of their actual will and a parliamentary majority which is smaller than it looks.
Kwarteng: "We need to encourage people to join the labour market. We will make work pay by reducing people's benefits if they don't fulfil their job search ...we'll ask 120k more people on Universal Credit to take active steps to seek...work or...have their benefits reduced."
Kwarteng says govt will introduce legislation to compel unions to put pay offers to members before strike action can take place
Kwarteng confirms bankers' bonus cap is to be removed. First significant Brexit divergence.
Kwarteng confirms new investment zones. They may or may not remind you of George Osborne's enterprise zones.
Continued debate about this as to whether it actually creates new economic activity or just displaces it. twitter.com/lewis_goodall/…
Lewis Goodall@lewis_goodall
Sep 23 22
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Kwarteng confirms new investment zones. They may or may not remind you of George Osborne's enterprise zones.
First and perhaps only mention of levelling up. No longer a central guiding economic principle. Back to the future of "if we really need to level up we need to unleash the power of the private sector."
Kwarteng: "The interest of businesses are not separate from the interests of individuals and families...every additional tax on business is ultimately passed through to families."
An unabashed rearticulation of 1980s Conservative economic thinking- v different to 2019 Conservaive economic thinking. twitter.com/lewis_goodall/…
Lewis Goodall@lewis_goodall
Sep 23 22
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Kwarteng: "The interest of businesses are not separate from the interests of individuals and families...every additional tax on business is ultimately passed through to families."
Nothing mini about this budget.
Stamp duty cut: no stamp duty to be paid on first £250,000. Doubling current threshold. Is permanent- not just a holiday.
Here's the rabbit- government to abolish the top 45% rate of tax.
AND a cut to the basic rate of income tax to 19% from April next year.
Kwarteng: "For too long in this country we've indulged in a fight over redistribution."
Rachel Reeves: "Can I thank the Chancellor for his comprehensive demolition of the record of the last 12 years. Their record. Their failure. Their vicious circle of stagnation."
Reeves: "The oil and gas producers will be toasting the Chancellor as we speak as working people are left to pick up the bill."
Reeves: "The Chancellor refuses to allow independent economic forecasts to be published...it's a budget without figures, a menu without prices, what has the Chancellor got to hide? It's an admission of 12 years of economic failure."
Reeves: "For all the chopping and changing, all the chaos and confusion there's been one person there throughout: the Prime Minister."
"A minister for a decade and defended every single economic decision. When the PM says she wants to break free from the past, she's saying she wants to break from her own economic record." twitter.com/lewis_goodall/…
Lewis Goodall@lewis_goodall
Sep 23 22
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Reeves: "For all the chopping and changing, all the chaos and confusion there's been one person there throughout: the Prime Minister."
Reeves: "They've replaced levelling up with trickle down."
Lewis Goodall
@lewis_goodall
Reporter. Analysis and Investigations Editor @global. Presenter: @thenewsagents and @lbc | Formerly of @bbcnewsnight @skynews. DMs open- tell me your stories.
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