Mini Budget 22: Government to target growth of 2.5%

Several planned tax cuts

The government has set a target of reaching a 2.5% growth rate for the UK economy, Chancellor Kwasi Kwarteng said at today’s (23 September) Mini Budget.

The chancellor set out a legislative program of "supply side reforms", which he said would allow the UK to transition from a "vicious cycle of stagnation into a virtuous cycle of growth". Average UK real wage growth has been broadly stagnant since the 2008 financial crisis, while GDP growth sat at just 2% until the pandemic began. Despite having the lowest corporation tax rate in the G7, the UK also has the lowest rate of business investment in the G7. Mini Budget 22: Chancellor scraps 45% top rate of income tax for high earners UK investment was 10% in 2019, compared to the OEC...