Kwasi Kwarteng pledged to “turn the vicious cycle of stagnation into a virtuous cycle of growth” today as he set out the new Government’s approach to the UK economy in the mini-budget.

His announcement saw changes announced to Universal Credit, Stamp Duty and a change in the planned alcohol duty rise.

The planned alcohol duty rise is to be frozen for another year.

Reforms to modernise alcohol duties will also be taken forward and the government has said it will publish a consultation on these plans.

The Chancellor said: “Our drive to modernise also extends to alcohol duties. I have listened to industry concerns about the ongoing reforms. I will therefore introduce an 18-month transitional measure for wine duty.

“I will also extend draught relief to cover smaller kegs of 20 litres and above, to help smaller breweries. And, at this difficult time, we are not going to let alcohol duty rates rise in line with RPI.

“So I can announce that the planned increases in the duty rates for beer, for cider, for wine, and for spirits will all be cancelled.”

The Chancellor also said that VAT-free shopping would be introduced for overseas visitors.

Stamp Duty Cut and Universal Credit changes announced 

The new Chancellor, speaking in the House of Commons this morning, said changes to Stamp Duty would mean an extra 200,000 people would now avoid having to pay the tax.

Mr Kwarteng said: Home ownership is the most common route for people to own an asset, giving them a stake in the success of our economy and society.

“So, to support growth, increase confidence and help families aspiring to own their own home, I can announce that we are cutting stamp duty. In the current system, there is no stamp duty to pay on the first £125,000 of a property’s value. We are doubling that – to £250,000.”

Changes were also made to Universal Credit, meaning claimants will have to make a stronger effort to find work.

The change means more people who receive the benefit will have to meet regularly with their work coach, take steps to increase their earnings and will face benefit reductions if commitments aren't met.