HM Treasury communication on Mini Budget and Scotland

HM Treasury has issued the below to the STA this morning.

‘The Chancellor today (Friday 23 September) unveiled his Growth Plan to release the huge potential in the UK economy, tackling inflation and delivering higher productivity and wages.

Kwasi Kwarteng set out a bold plan backing business and putting them on a path of economic growth.  More than 2.3 million workers in Scotland will see a cut in their National Insurance payments, worth an average of £285 a year and tax cuts to income tax and Stamp Duty that apply elsewhere in the UK will see the Scottish Government receive more than £600 million over the three-year 2021 Spending Review period.

Announcements include:

• Corporation tax rise is cancelled, keeping it at 19% as government sets sights on 2.5% trend rate of growth.
• The Annual Investment Allowance is now £1 million permanently, rather than letting it return to £200,000 in March 2023.  This will mean businesses can deduct 100% of the cost of qualifying plant and machinery in the first year up to this limit.
• The UK Government will look to work with the Scottish Government and local authorities to set up Investment Zones in specific sites across the UK.  These will be hubs for growth, encouraging investment in new shopping centres, restaurants, apartments and offices, and creating thriving new communities.
• This plans builds on the Energy Bills Relief Scheme set out earlier this week to protect thousands of businesses across Scotland from rising energy costs with discounts of wholesale gas and electricity prices.

More details can be found in HMT’s press release and factsheets on Investment Zones, Corporation Tax and more here.’