The Growth Plan 2022 makes growth the government’s central economic mission, setting a
target of reaching a 2.5% trend rate. Sustainable growth will lead to higher wages, greater
opportunities and provide sustainable funding for public services.
The United Kingdom currently faces a period of high inflation. The government has already
taken significant steps to address high energy bills, the biggest challenge, by announcing the
Energy Price Guarantee. This will mean the average household will pay no more than £2,500 per
year for a period of two years from October 2022. The government has committed to a new sixmonth Energy Bill Relief Scheme for businesses and other non-domestic energy users, including
charities and public sector organisations,
providing them with a discount on energy prices.
Taken together, these policies will significantly reduce inflation and support growth in
the short term.
The government will also make significant interventions in the energy market to help reduce
costs and improve resilience, over the longer term. Agreements will be negotiated with major
gas producers and electricity generators to bring down wholesale prices. The new Energy
Markets Financing Scheme, delivered with the Bank of England, will help to reduce disruption to
the UK’s wholesale gas and electricity market.
The North Sea Transition Authority will launch a
new oil and gas licensing round.
To drive higher growth, the government will help expand the supply side of the economy. The
Growth Plan sets out action to unlock private investment across the whole of the UK, cut red
tape to make it quicker to deliver the UK’s critical infrastructure, make work pay, and support
people to get onto the property ladder. New Investment Zones will provide time-limited tax
reliefs, and planning liberalisation to support employment, investment, and home ownership.
The Growth Plan makes good the government’s commitment to cut taxes for people and
businesses. The government will cut National Insurance contributions from November and
cancel the Health and Social Care Levy and next year’s planned rise in Corporation Tax, keeping it
at a competitive rate of 19%.
The government is going further to deliver tax cuts. From 23 September the threshold from
which Stamp Duty Land Tax (SDLT) must be paid will be doubled to £250,000 for all home
purchases. The threshold at which first-time buyers begin to pay SDLT will increase from
£300,000 to £425,000, and the maximum value of a property on which first-time buyers’ relief
can be claimed will also increase from £500,000 to £625,000.
The Growth Plan also brings forward the planned cut to the basic rate of income tax to April
2023, and abolishes the additional rate of income tax completely, simplifying the tax system and
making the UK more competitive
. These tax cuts will ensure individuals keep more of what they
earn, and make the UK a more attractive place to live and work.
The government will also repeal the complex changes to off-payroll working, allowing businesses
to get on with business. Tax simplification will be embedded at the heart of the tax system as a
core HM Treasury and HMRC priority.
6 The Growth Plan 2022
The government is committed to fiscal sustainability and reducing debt as a proportion of
Gross Domestic Product (GDP) over the medium-term. The government will take the responsible
decisions that are needed to achieve this aim, including keeping spending under control. The
Chancellor has commissioned the Office for Budget Responsibility to produce a forecast before
the end of the calendar year.
Taken together, reforming the supply side of the economy, cutting and simplifying tax, and
maintaining fiscal discipline will drive efficiency, enhance UK competitiveness, and help to boost
growth sustainably in the long term.
