During a fiscal statement to parliament, UK Finance Minister Kwasi Kwarteng said that "We need a new approach for a new era, focused on growth. Our aim over the medium term is to reach a trend rate of growth of 2.5%.”
Additional takeaways
Bonus cap pushed up bankers' basic salary, pushed activity outside Europe.
We will scrap bankers' bonus cap.
Will set out ambitious financial services reform later this year.
Will liberalise planning rules for new 'investment zones'.
Accelerated tax reliefs for investment in construction, plant and machinery.
New hires on investment zones will not pay national insurance on first 50,000 pounds of earnings.
National insurance exemption is for employer's national insurance contribution.
We will cut taxes for businesses in designated tax sites for 10 years.
We will review the tax system to make it simpler and more dynamic.
Corporation tax will remain at 19%.
UK will have lowest rate of corporation tax in G20.
We will extend the enterprise investment scheme. The venture capital trusts beyond 2025.
Will increase limits on company share option plans to make them more generous.
We have decided to introduce vat-free shopping for overseas visitors.
Will abolish additional rate of income tax.
Market reaction
GBP/USD was little impressed by the UK mini budget release, as it hovers near multi-decade lows of 1.1150, down 0.86% on the day.