UK Finance Minister Kwarteng unveils measures to boost growth

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Britain’s new Chancellor of the Exchequer Kwasi Kwarteng walks outside Number 10 Downing Street, in London, Britain September 6, 2022. REUTERS/Toby Melville

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LONDON, Sept 23 (Reuters) – Britain’s Finance Minister Kwasi Kwarteng is presenting a mini-budget to parliament on Friday to cut taxes and household and business energy bills to spur economic growth.

ONE OF THE MOST IMPORTANT INTERVENTIONS

“People will have seen the horrors of (Russian President Vladimir) Putin’s illegal invasion of Ukraine. They will have heard reports that their already expensive energy bills could reach 6,500 pounds ($7,253) l “next year. Mr President, we were never going to let that happen. The Prime Minister moved with great speed to announce one of the most important interventions the British state has ever made.

NEW APPROACH FOR NEW ERA

“Growth is not as high as it should be… We need a new approach for a new era, focused on growth. Our objective, in the medium term, is to reach a rate growth of 2.5%. And our plan is to expand the supply side of the economy through fiscal incentives and reforms.”

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BARRIERS FOR THE COMPANY

“There are too many barriers to doing business. We need a new approach to removing them. This means reforming the supply side of our economy…(Our plans) will cover: the planning system, regulations trade, childcare, immigration, agriculture productivity and digital infrastructure.

STRIKE UNACCEPTABLE DISRUPTION

“At such a critical time for our economy, it is simply unacceptable that strikes are disrupting so many lives. Other European countries have minimum service levels to prevent militant unions from shutting down transport networks during strikes. We so we will do the same. And we will go further.”

BANKS SHOULD PAY TAX IN LONDON, NOT PARIS OR NEW YORK

“We need global banks to create jobs here, invest here and pay taxes here in London, not in Paris, not in Frankfurt, not in New York. The bonus cap has only increased wages by bankers’ base or boosting business outside of Europe. He never capped total compensation, so let’s not sit here and pretend otherwise. So we’ll get rid of it.”

THE TAX OFFICE TO SOLVE THE GROWTH RIDDLE

“We come to taxation – key to solving the puzzle of growth. The tax system is not just about increasing revenue from public services, essential as they are. Taxation determines incentives across our economy And we think high taxes reduce incentives to work, they discourage investment and they hamper enterprise.”

THE LOWEST CORPORATE TAX IN THE G20

“We will have the lowest corporate tax rate in the G20. This will put nearly £19bn a year back into the economy. That’s £19bn for businesses to reinvest, create jobs, raise wages or pay the dividends that support our pensions.”

($1 = 0.8962 pounds)

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Reporting by Sachin Ravikumar

Our standards: The Thomson Reuters Trust Principles.

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