Tax Cuts Coming For Millions In Mini-Budget Next Week

AN emergency mini-budget to deliver tax cuts promised by Liz Truss during her Tory leadership campaign will take place next Friday.

-  Sam Lister

Chancellor Kwasi Kwarteng is expected to reverse the 1.25 per cent hike in national insurance and halt plans to increase corporation tax from 19 to 25 per cent in April.

The Chancellor and the Prime Minister have made growing the economy a top priority, and reducing the tax burden is central to the plan.

Mr Kwarteng is also considering ripping up rules imposed by the European Union that restrict bankers' bonuses to help drive growth in the City.

Difficult

Annual pay-outs were limited to twice the salary level in the wake of the 2008 financial crisis.

Treasury insiders fear advantageous tax rates for bankers in Paris mean London is losing out on talented workers.

They also want to take advantage of Brexit to make the UK an attractive place for investment.

Mr Kwarteng told City bosses, "We need to be decisive and do things differently" as he set out an "unashamedly pro-growth plan". City

managers say the cap means salaries have to be permanently pushed up to make up for lower bonuses, which means their fixed costs are higher regardless of performance.