Pound falls to lowest since 1985 as Kwasi Kwarteng delivers mini budget


All eyes are on Kwasi Kwarteng today as he prepares to unveil a series of tax cuts in his mini budget.

Economists at the Institute for Fiscal Studies said today’s announcements would likely represent “the biggest tax-cutting fiscal event since Nigel Lawson’s 1988 budget.”

The Chancellor has already confirmed that the recent National Insurance increase will be phased out from November.

Other measures expected include the removal of the planned increase in corporate tax and the reduction of stamp duties, as well as the removal of the cap on bankers’ bonuses and the creation of new low-rate investment zones. of taxation.

There could be more too, with Mr Kwarteng set to announce two unreported ‘rabbit out of the hat’ policies.

5 things to start your day

1) Borrowing costs rise as Bank of England pushes ahead with bond sales More: Bailey bets Truss energy bailout will save Britain from soaring inflation

2) Net zero rules watered down in race to boost North Sea drilling Rees-Mogg weakens climate ‘checkpoint’ regulations as part of efforts to increase production

3) Guardian director resigns in protest at ‘imperial’ editor’s choice of chief executive Current boss Anna Bateson’s nomination was pushed by editor Katharine Viner

4) BT calls for staff to return to office Telecoms giant says new approach ‘fundamental to business success’

5) Pubs are ditching draft beer for kegs of sparkling craft beer as owners fear drop in visits Hospitality sales remain well below pre-pandemic levels, consultant suggests

What happened overnight

Asian markets fell again on Friday amid a global selloff fueled by recession fears after central banks around the world raised interest rates to tackle decades-high inflation.

Hong Kong, Shanghai, Sydney, Seoul, Singapore, Wellington, Taipei and Manila all fell.

coming today

  • Economy: Mini Budget (UK), Manufacturing PMI (UK, US, EU), Services PMI (UK, US, EU), Composite PMI (UK, US, EU)
  • Company : European Opportunities Trust, Smiths Group (annual results); Biffa, Investec (business update)

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