UK’s New Chancellor Announces Stimulus Package in Face of Rising Energy Prices

British Chancellor of the Exchequer Kwasi Kwarteng announced a vast stimulus package on Friday to help UK households and businesses cope with rising energy costs and the country’s cost-of-living crisis. The package includes measures to limit energy price increases, cut taxes, and support businesses..

**Energy Price Freeze**.

One of the most significant measures in the package is a freeze on energy prices for households and businesses for the next two years. The average UK household energy bill is currently around £1,971 per year and is expected to rise to £3,549 in October and £4,266 in January 2023. The price freeze will keep energy bills at the current level, saving households around £1,000 per year..

**Tax Cuts**.

The package also includes a number of tax cuts to help boost the economy and ease the cost-of-living crisis. These measures include:.

* Income tax cut from 20% to 19%.

* Corporation tax cut from 19% to 17%.

* Cut in fuel duty by 5p per liter.

**Business Support**.

The package also includes a number of measures to support businesses, including:.

* Six-month extension of the energy price cap for businesses.

* Extension of the temporary super-deduction tax break for businesses investing in capital equipment.

* Creation of a new .

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