Mini September Budget: predicted cost of living support

Businesses and employees across the UK have been rallying for more support amongst the ever-worsening cost of living crisis; it seems that this Friday, our new Chancellor, Kwasi Kwarteng, may be answering these calls with urgent financial support.

Sources such as the BBC reveal the Government is planning a 'mini' Budget on 23^rd September, documenting how funds will be spent over the coming months.

While Government budgets are typically once a year, this last-minute Budget is being hastily introduced to provide support with rising energy, fuel and food bills.

Predictions: what will the mini Budget introduce?

While we can’t say for certain what will be coming until Friday, various news outlets are suggesting a few things that are likely to be included.

Business support

With food and fuel prices reaching monumental highs, many businesses are hoping to receive support from the Budget to tackle the added costs.

Simply put, it’s becoming far more expensive to run your own business; in particular, those in the hospitality industry are facing a squeeze as they are having to pay more for the food they serve and the heating needed to keep their premise warm against the impending cold.

Additionally, the British Retail Consortium (BRC)v warned that the cost of living crisis could impact stores significantly, hindering the golden quarter for retailers in the run-up to Christmas, when sales typically reach their peak.

While the specifics on what could be included for business support are still clouded in mystery, sources such as the BBC remain optimistic that we’ll be seeing something – fingers crossed. 

Low-tax investment zones

It’s expected that the Chancellor will use this budget to create a network of low-tax, low-regulation investment zones.

We could be looking at planning regulations being relaxed in up to 12 places, with taxes being cut to incentivise investment.

Tax cuts

A 1.25% increase to National Insurance Contributions (NICs) took effect this April.

When running for Prime Minister, Liz Truss told MPs that she wanted to cut taxes, stating that she would reverse this National Insurance Contributions increase.

Following Ms Truss' pledge when campaigning, many are expecting this change to potentially come into effect during this mini Budget.

What do these speculated changes mean for people?

Numerous people are eagerly anticipating any news on how the Government will support rapidly rising prices and the cost of living crisis.

For some, simply knowing the Government will be investing in support is enough; however, others are calling for more to be done, such as energy companies paying more tax to help people further with their bills.

Either way, the speculated changes are a step in the right direction, potentially offering support for everyone from individual employees to business owners, but only time will tell (Friday) what actual support will be finalised.

What is IRIS hoping to see in the mini budget?

From an IRIS perspective, in addition to the cost of living support, we’d be keen to see more focus on accelerating the labour market recovery.

Bringing back initiatives such as the Kickstarter Scheme would enable businesses to train and re-train those without the required skills needed for current vacancies.

Additionally, allowing businesses to use the apprenticeship levy to fund the hiring of people who have been out of work for an extended period can help bring them back into the workforce with financial support.

We eagerly await the announcement on Friday, and hopefully, this will be the added support we all need to make it through the coming months; as always, on gov.uk, you’ll be able to find a full write-up of the budget.