The Chancellor Kwasi Kwarteng has been giving his mini-budget in the Commons.

He began with energy bills and a £2,500 price cap. The government could spend tens of billions helping to subsidise bills over the next couple of years paid from increased borrowing.

The energy package will cost £60 billion for the six months from October.

For business, charities and the public sector the energy bill relief scheme will reduce wholesale energy costs.

There is a focus on growth and the aim over the medium term is to reach a trend rate of growth of 2.5 per cent through tax incentives and reform.

The cap on bankers bonuses meaning a banker’s bonus cannot be higher than twice their annual salary unless shareholders agree will be scrapped.

It was introduced in 2014 following the global financial crisis.

The Chancellor will also cut the basic rate of income tax to 19p in April 2023, abolish the top 45 per cent rate of income tax, cut stamp duty, and axe planned rises in alcohol duties.

Shadow Chancellor Rachel Reeves criticised the lack of a windfall tax on energy providers and the scrapping of the cap on bankers bonuses. She said the cost of the energy price cap funded by borrowing would leave eye-watering profits by the energy companies untaxed meaning working people would pick up the bill. She characterised it as a plan to reward the already wealthy.