- The measures in the ‘growth plan’ will raise annual economic output by £99 billion over ten years, 3 per cent larger than without the reforms.
- Investment is forecast to be £29 billion higher annually, 10 per cent higher than without the reforms.
- Average weekly earnings (before tax) are predicted to be £22 higher as a result of dynamic effects of the reforms. Annually, this equates to a £1,148 increase.
- The plan would contribute 0.3 percentage points towards the government’s ambition of a 2.5 per cent trend rate of growth.
- The biggest change results from scrapping the corporation tax rise, previously planned to increase by 6 percentage points to 25 per cent. This alone will lead to £20 billion higher investment and £59 billion higher GDP.
- National insurance and health and social care levy changes announced on 22 September raise forecast GDP by £25 billion.
- Cutting the basic rate of income tax by 1 percentage point from 20 to 19 per cent raise forecast GDP by £8 billion.
- Increased tax receipts due to faster economic growth will recover 75 per cent of the static cost of the ‘growth plan’ package.