TAXES are to be slashed for thousands of Brits living in investment zones as part of the Government’s new homes boost.
Chancellor Kwasi Kwarteng will announce the package as part of The Growth Plan on Friday.
The government is in discussion with 38 local and mayoral combined authority areas in England, including specific sites in the West Midlands, Tees Valley, Somerset and Hull are included in the plans.
Ultra low tax and low regulation areas of the country are part of Liz Truss’ plans to create “investment zones” to turbocharge the economy.
Businesses that move to and invest in these areas will have their levies slashed and be freed from red tape – like overzealous eco rules that can block new development.
In his speech to the House of Commons tomorrow, Mr Kwarteng will outline his hopes to ease the pressure on households.
He will explain: “Growth is not as high as it needs to be, which has made it harder to pay for public services, requiring taxes to rise.
“This cycle of stagnation has led to the tax burden being forecast to reach the highest levels since the late 1940s.
“We are determined to break that cycle. We need a new approach for a new era focused on growth.
“That is how we will deliver higher wages, greater opportunities and sufficient revenue to fund our public services, now and into the future.
“That is how we will compete successfully with dynamic economies around the world.
“That is how we will turn the vicious cycle of stagnation into a virtuous cycle of growth.
“We will be bold and unashamed in pursuing growth – even where that means taking difficult decisions. The work of delivery begins today”.
Mr Kwarteng is set to give a so-called Mini Budget statement- where he’s expected to reveal 30 measures to tackle high energy bills, drive down inflation and cut taxes.
Also expected to be announced is Liz Truss’ plan ‘to cut Stamp Duty’ and help Britain’s drive economic growth – with Whitehall sources saying the move could be a “rabbit” out of the hat in Mr Kwarteng’s planned speech.
The Chancellor will also reveal more than 100,000 people in part-time work could face a benefit cut if they fail to actively seek more work in a major shake-up of the welfare system.
It comes after Ms Truss revealed to US corporations that she will slate Rishi Sunak’s scheduled corporation tax hike in a bold attempt to attract the nation’s investment to the UK.
No10 is also considering slashing personal taxes for workers who live and work in these areas.
Personal taxes are things like income tax and workers’ NICs contributions.
If No10 goes ahead with the plan, it would be a hugely radical shake-up of the tax system and is likely to spark massive controversy.
Senior Cabinet ministers backing the personal tax cuts believe it will kick start growth in poor areas, create jobs and help level up Britain.