1 Table 4.2: The Growth Plan 2022 policy decisions (£ million) Head 2022-23 2023-24 2024-25 2025-26 2026-27 Cutting taxes for people National Insurance: reverse temporary 1.25pp 1 increase in NICs rates from November 2022, and Tax -6,930 -16,955 -17,210 -17,685 -18,185 cancel the Health and Social Care Levy2 2 Memo: increased tax yield due to higher wages +860 +2,620 +2,720 +2,825 +2,935 and profits as a result of the tax change3 Memo: net Exchequer cost of reversing temporary 3 1.25pp increase in NICs rates from November -6,070 -14,335 -14,490 -14,860 -15,250 2022, and cancelling the Health and Social Care Levy4 4 Dividend Tax: reverse 1.25% increase to rates, from Tax 0 -1,440 +995 -1,090 -885 April 2023 5 Income Tax: reduce the basic rate from 20% to 19% Tax 0 -5,270 -535 +280 +45 from April 20235 6 Income Tax: remove the additional rates of income Tax -2,365 +625 -795 -2,190 -2,065 tax from April 20236 7 Stamp Duty Land Tax: increases to nil-rate thresholds7 Tax -795 -1,450 -1,535 -1,595 -1,655 8 Tax-free shopping: introducing a modern, digital, Tax 0 0 -1,265 -1,955 -2,060 VAT-free shopping scheme Cutting taxes for businesses 9 Corporation Tax: cancel planned rate increase, Tax -2,265 -12,365 -16,570 -17,610 -18,710 maintaining rate at 19% from April 20238 10 Bank CT Surcharge: maintain rate at 8% and set Tax +220 +885 +1,065 +1,085 +1,090 allowance at £100m from April 2023 11 Annual Investment Allowance (AIA): permanently set Tax -245 -930 -1,365 -1,440 -1,335 at £1m from April 2023 Employee share schemes: Company Share Option 12 Plan reforms (share class and £60k option limit) from Tax 0 -10 -20 -25 -115 April 2023 13 Venture capital schemes: increase Seed Enterprise Tax 0 0 -45 -30 -35 Investment Scheme limits from April 2023 Simplifying the tax system Off-payroll working: reduce burdens on business by 14 repealing the off-payroll working reforms from April Tax 0 -1,110 -1,365 -1,670 -2,045 2023 15 Alcohol Duty: freeze all duties for one year from Tax -80 -545 -565 -590 -610 1 February 2023 16 Alcohol Duty: post-consultation changes to reform Tax +25 -15 -80 -30 -30 package Previously announced 17 Cost of living support package announced in May Spend -15,350 0 0 0 0 2022 18 Energy Bills Support Scheme: cancellation of Tax 0 -1,195 -1,195 -1,195 -1,195 clawback 19 Energy Profits Levy9 Tax +7,730 +10,410 +6,420 +3,500 +60 Total policy decisions10 -19,195 -26,745 -31,345 -39,415 -44,795 o/w Total spending policy decisions -15,350 0 0 0 0 o/w Total tax policy decisions -3,845 -26,745 -31,345 -39,415 -44,795 The Growth Plan 2022 26