Although normal politics has been paralyzed since the Queen’s death, the chancellor and his team are putting the finishing touches to the budget with the aim of announcing it once the country emerges from national mourning. But with Liz Truss expected to be at the UN general assembly in New York next week and the government also planning to set out its priorities for the NHS, there was limited time available for a budget event. In the mini-budget, the government is expected to confirm plans to reverse the recent rise in national insurance, even though it benefits higher earners more, returning around £1,800 a year to the top earners while the lowest earn around £7 a year. Truss has already said he would reject the planned corporation tax hike. Her team has also spoken to business groups about changes to business rates and cuts in VAT to help with the energy crisis, as well as a longer-term review of these taxes. Senior MPs believe Kwarteng could make a “rabbit out of the hat” announcement on the cost of living crisis, with speculation that this could include bringing forward by a year the pledge, made by Rishi Sunak as chancellor, to reduce income tax by 1% from 2024. The Government is expected to outline further details of the Trust’s £100bn emergency rescue package to help households with their energy bills, after criticism that it had not said how the package would be funded. Truss was under pressure from Tory MPs to set out her plans before the Commons broke up for party conferences. It means parliament will sit for an extra day before Labor’s conference kicks off on Saturday in Liverpool, with the break expected to be shortened by a week so MPs can return before mid-October.
