iz Truss is considering plans to cut personal taxes in addition to corporate taxes in new “investment zones” as she sets the wheels of her economic strategy in motion.
Those who live and work in the prime low-tax areas targeted by the prime minister could see their own contributions reduced, while the burden on businesses is also eased – although no decisions have been made yet, it is clear.
The proposed “investment zones,” called “full fat freeports,” were a staple of Mrs. Truss’s campaign for Tory leadership.
According to her plan, these areas would benefit from a low tax burden, fewer planning constraints and regulations that are adjusted on a case-by-case basis.
The Sun On Sunday reported that the new prime minister is now considering whether to cut personal taxes for people who work there.
Chancellor Kwasi Kwarteng could announce as many as 12 of the “investment zones” in his much-anticipated mini-budget on Friday, according to The Sunday Times, though he made no mention of tax cuts for individuals.
Ministers are also said to have discussed whether environmental protection in these areas could be weakened to pave the way for new developments.
The government is reportedly looking at the West Midlands, the Thames Estuary, Tees Valley, West Yorkshire and Norfolk as potential sites.
With speculation mounting as to the direction the policy will take as Ms Truss wants to make her mark on No. 10, it has also been suggested that the Prime Minister could lift the ban on new high schools within months.
Senior Tory MP Sir Graham Brady plans to table an amendment to the Schools Bill in an effort to bring about the change, and believes political conditions are promising, according to The Sunday Telegraph.
Politics will return to full force after the Queen’s funeral, with ministers outlining their support for businesses and plans to keep the NHS through the winter, before the Chancellor’s so-called ‘fiscal event’ closes the week.
Normal activities in Westminster have been suspended since the late monarch’s death, and business in both Houses has been shut down due to the official mourning period.
MPs are expected to return to the House of Commons on Wednesday after the state funeral, where those who wish can take a new oath or pledge to the king.
The PA news agency understands that Economics Minister Jacob Rees-Mogg will also provide further details about the government’s plans to help companies through the energy crisis.
Heath Secretary and Deputy Prime Minister Therese Coffey is expected to set out on Thursday her vision to help the NHS through the winter months.
Mr. Kwarteng’s mini-budget, aimed at tackling the cost of living and boosting growth, will then be delivered on Friday.
It is expected to confirm Ms Truss’ plans to reverse the national insurance increase and cancel the planned corporate tax increase.
It has also been suggested that the Chancellor will take a step to remove the cap on bankers’ bonuses, although the PA understands that no final decisions have been made yet.
Last week Ms Truss announced her proposals to combat skyrocketing utility bills, with a move to curb prices and increase domestic supplies.
That included lifting the fracking ban and new licenses for North Sea oil and gas.
Ms Truss said she would “end once and for all the UK’s short-term approach to energy security and supply”.
But her plans have come under fire from a former government chief scientific adviser for warning that the prime minister’s push for more oil and gas production is “completely inconsistent” with the country’s net-zero targets.
Sir David King, who held the post from 2000 to 2007, told TNZT: “We are looking at a situation where the crisis is here today.
“But we don’t realize that when we say ‘let’s go ahead and start new fracking operations in this country’.
“It begs for faith.
“What it seems to show is that leadership in government doesn’t understand the nature of the climate crisis.”
The chance for Mr Kwarteng’s ‘fiscal event’ is very limited, with a political hiatus following the deaths of the Queen and Prime Minister expected to fly to New York for the United Nations General Assembly after Monday’s funeral .
MPs were supposed to take a break for the congress season on Thursday, but will now be asked to sit down for a day longer to make time for the mini budget on Friday.
A parliamentary business paper also suggests MPs will consider a motion Thursday proposing that the House of Commons return early from the conference recess on October 11.