Economic Review | September 2022

Economic Review | September 2022

Our latest Economic Review covers:

  • During a ‘mini-budget’ delivered on 23 September, the Chancellor outlined a Growth Plan centred on the biggest package of tax cuts in fifty years. As well as reversing April’s National Insurance rise and the planned increase in Corporation Tax, Mr Kwarteng also announced Income Tax and Stamp Duty cuts with the total cost of the package estimated to be almost £45bn by 2027. On 3 October, the Chancellor announced a U-turn on plans to scrap the 45p rate of Income Tax.
  • At its latest meeting, the MPC voted by a 5-4 majority to hike the Bank Rate by 0.5 percentage points to 2.25%. Among the dissenting voices, three were in favour of raising rates by a larger amount of 0.75 percentage points, while the other would have preferred a smaller quarter-point rise
  • In the UK, the Prime Minister and Chancellor met with the OBR on 30 September, in a move widely seen as an attempt to reassure financial markets following a challenging week, which saw an abrupt policy shift by the BoE to restart bond purchases.