Chamber Reacts to Today's Political Developments

14 Oct 2022

Published in: Black Country Chamber of Commerce News

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New Chancellor and Increase to Corporation Tax

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This afternoon in a Downing Street Press briefing, the Prime Minister announced a reversal of plans which were delivered as part of the ‘mini budget’ only three weeks ago.

In an attempt to stabilise growing tension between the markets, fiscal policy and subsequent interventions by the Bank of England, Liz Truss abandoned plans not to increase Corporation Tax which will now rise from 19% to 25%.

Today’s announcement followed the earlier news that Kwasi Kwarteng had been replaced as Chancellor by Jeremy Hunt who has previously been Foreign Secretary, Health Secretary and Culture Secretary.  Further changes at the Treasury have seen Edward Argar replace Chris Philip as Chief Secretary to the Treasury.

The Prime Minister hopes that today’s political developments will calm the markets which had reacted strongly to the mini budget’s unfunded tax cuts as part of the new incumbent to Number 10’s vision for a low wage, strong growth economy.

Sarah Moorhouse, Chief Executive of the Black Country Chamber of Commerce said:

"Business and the markets need stability. The last few weeks have highlighted that when political and monetary policy are out of step, this can cause issues and pain across the whole economy.

“As more details emerge following today’s developments, we hope they will calm turbulent market forces and provide clarity. Firms remain concerned about upfront costs such as National Insurance Contributions and energy bills alongside rising inflation and interest rates.  We are now on our sixth chancellor in three years and it is important that the government listens to business and sets the right policy to create an environment where they can grow and prosper."