Kwasi Kwarteng will pledge to “turn the vicious cycle of stagnation into a virtuous cycle of growth” as he sets out the new Government’s approach to the UK economy.
The chancellor will announce tens of billions of pounds both of increased spending and of tax cuts in his mini-budget, officially known as a “fiscal event”, at around 9.30am on Friday.
The statement is expected to include details of how the Government will fund the energy price cap for households and businesses, and put into practice many of Prime Minister Liz Truss’s tax-slashing promises.
The Government is dubbing it a “growth plan” of some 30 measures, which comes at a time when the UK faces a cost-of-living crisis, recession, soaring inflation and climbing interest rates.
Mr Kwarteng is expected to tell the House of Commons: “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.”
But the chancellor got some unwelcomed news before he set out for parliament.
Bloomberg charts showed a steep drop for the pound against the dollar again this morning, sliding below $1.12.
According to Ed Conway, sterling’s strength is down to the lowest level ever ahead of the mini budget.
Lots to ponder for the newly-appointed chancellor.