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 .
