Mini Budget 22: Government to target growth of 2.5%

Several planned tax cuts confirmed by Kwasi Kwarteng

Elliot Gulliver-Needham
clock • 1 min read

The government has set a target of reaching a 2.5% growth rate for the UK economy, Chancellor Kwasi Kwarteng said at today’s (23 September) Mini Budget.

The chancellor set out a legislative program of "supply side reforms", which he said would allow the UK to transition from a "vicious cycle of stagnation into a virtuous cycle of growth". Average UK real wage growth has been broadly stagnant since the 2008 financial crisis, while GDP growth sat at just 2% until the pandemic began. Despite having the lowest corporation tax rate in the G7, the UK also has the lowest rate of business investment in the G7. UK investment was 10% in 2019, compared to the OECD average of 14%, and business investment remains nearly 6% lower than pre-pandem...

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