Alex Mackay, Co-founder and Owner of Mishon Mackay, reflects on today’s mini budget from Chancellor Kwasi Kwarteng
“Today our new Chancellor awarded tax cuts pretty much across-the-board. Not only a stamp duty adjustment but corporation tax cuts and the reduction of national insurance contributions. The Chancellor said that people should keep more of what they earn, and we couldn’t agree with that more. The planned tax increase in corporation tax to 25% was cancelled, therefore remaining at 19%. Also, a general tax cut of 1% for all employees.
“We have seen a strong housing market post Brexit with price increases in most areas and strong sales. The Chancellor wishes to build on this and has introduced a stamp duty adjustment. No longer will the maximum allowance be £125,000 as this has been increased to £250,000. For first time buyers, the increase has gone from £300,000 to £425,000. All of these measures regarding stamp duty are to be effective immediately.
“With the last national insurance increase cancelled and a focus on growth, this is without doubt a massive tax cutting mini budget and hopefully will lead to renewed enthusiasm from employers to create new jobs and expand their businesses.
“Of course we are challenged by higher interest rates, as announced by the Bank of England yesterday, but this is the situation the government faces and certainly with the housing market they responded positively to get the bottom end of the market moving.
“Our industry will respond strongly to this mini budget with a continued assurance that your money is safe in bricks and mortar.”
