Martin Lewis said he’s ‘really worried’ over the new mini-budget announced today (Picture: ITV/Twitter/Getty)

Martin Lewis has sent a dire warning and said he’s ‘really worried’ if the new Tory plan doesn’t work.

Mr Kwarteng said household energy bills would be frozen at £2,500 and a cap on bankers’ bonuses would be lifted, among other measures.

He also announced stamp duty would be slashed, and that a rise in the price of wine and beer would be axed.

Just minutes after the Chancellor’s speech the pound sank to a fresh 37-year low as he unveiled tens of billions of pounds of tax cuts and spending.

Sterling declined by as much as 0.89% to 1.115 US dollars as Kwasi Kwarteng spoke to Parliament.

It has since stabilised at around 1.119 dollars, but this remains below the previous 37-year low struck earlier this week after concerns over surging interest rates hit the currency.

Speaking after the announcement the Money Saving Expert founder said: ‘That really was quite a staggering statement from a Conservative party government

‘Huge new borrowing at the same time as cutting taxes.

‘It’s all aimed at growing the economy. I really hope it works. I really worry what happens if it doesn’t.’

It comes after Chancellor Kwasi Kwarteng announced a line of new measures in a mini-budget meeting this morning.

In this morning’s speech, Mr Kwarteng also announced a cap on bonuses in the finance industry.

Chancellor Kwasi Kwarteng made the announcement in the mini-budget meeting this morning (Picture: AFP)
He made the announcement amongst other financial changes in the mini-budget (Picture: AFP)

The cap, introduced by the European Union in the wake of the 2008 financial crash, curbs bankers’ annual payouts to twice their salary.

The end of the measure was confirmed as part of Mr Kwarteng’s so-called mini-budget aimed at bouncing back from the cost of living crisis through ‘growth-focused’ policies.

Under new Government proposals, huge areas of England could be bolstered against the economic crisis with new ‘low-tax zones’.

Talks will be held with dozens of local authorities to set up the dedicated areas.

Potential investment zones include the likes of Blackpool, Cornwall, Hull, Leicestershire and Stoke-on-Trent.

The government has announced it will cut stamp duty, raising the possibility of house prices being pushed even higher in the short term.

Chancellor Kwasi Kwarteng set out his stall in his first ‘mini-budget’ after taking the great office of state this morning, saying we were ‘at the beginning of a new era’.

He said he was focused on growth, and wanted to ‘support families to own their own home’.

To help this, he said he would double the threshold where home buyers started to pay stamp duty to mean there would be none on the first £250,000 of the property.

MORE : Who is Kwasi Kwarteng? Inside Chancellor’s career path and family life

MORE : Household energy bills frozen at £2,500 and businesses given subsidy lifeline

MORE : Cap on bankers’ bonuses lifted in Kwasi Kwarteng’s mini budget

Mr Kwarteng also told of how huge areas of England could be bolstered against the economic crisis with new ‘low-tax zones’.

Talks are set to be held with dozens of local authorities to set up the dedicated areas.

Potential investment zones include the likes of Blackpool, Cornwall, Hull, Leicestershire and Stoke-on-Trent.

Mr Kwarteng said ‘people need to know help is coming’ (Picture: Getty)
The new Chancellor has laid out plans for the Growth Plan of the UK (Picture: PA)

He said: ‘To support growth right across the country, we need to go further, with targeted action in local areas.

‘So, today, I can announce the creation of new investment zones.

‘We will liberalise planning rules in specified agreed sites, releasing land and accelerating development.

‘We will cut taxes. For businesses in designated tax sites, for 10 years, there will be: Accelerated tax reliefs for structures and buildings. And 100% tax relief on qualifying investments in plant and machinery.’

He added the Government was in early discussions with regions across England to establish the new zones, as well as the devolved administrations in Scotland, Wales and Northern Ireland.

‘If we really want to level up, we have to unleash the power of the private sector,’ Mr Kwarteng added.

The Chancellor has also pledged to ‘turn the vicious cycle of stagnation into a virtuous cycle of growth’ as he sets out to tackle the economic ramifications of the living cost crisis.

It comes after the Bank of England warned the country had already fallen into a recession, as interest hikes hiked to 2.25 from 1.75.

The 38 areas in discussion to become an investment zone:

  • Blackpool Council
  • Bedford Borough Council
  • Central Bedfordshire Council
  • Cheshire West and Chester Council
  • Cornwall Council
  • Cumbria County Council
  • Derbyshire County Council
  • Dorset Council
  • East Riding of Yorkshire Council
  • Essex County Council
  • Greater London Authority
  • Gloucestershire County Council
  • Greater Manchester Combined Authority
  • Hull City Council
  • Kent County Council
  • Lancashire County Council
  • Leicestershire County Council
  • Liverpool City Region
  • North East Lincolnshire Council
  • North Lincolnshire Council
  • Norfolk County Council
  • North of Tyne Combined Authority
  • North Yorkshire County Council
  • Nottinghamshire County Council
  • Plymouth City Council
  • Somerset County Council
  • Southampton City Council
  • Southend-on-Sea City Council
  • Staffordshire County Council
  • Stoke-on-Trent City Council
  • Suffolk County Council
  • Sunderland City Council
  • South Yorkshire Combined Authority
  • Tees Valley Combined Authority
  • Warwickshire County Council
  • West of England Combined Authority
  • West Midlands Combined Authority
  • West Yorkshire Combined Authority

Household energy bills will be frozen at £2,500 this winter, it was also announced this morning.

He told the Commons: ‘People will have seen the horrors of Putin’s illegal invasion of Ukraine. They will have heard reports that their already-expensive energy bills could reach as high as £6,500 next year. Mr Speaker, we were never going to let this happen.’

Mr Kwarteng added: ‘People need to know that help is coming. And help is indeed coming.’

Existing plans to give each home £400 to cope with skyrocketing prices will also remain in place, he confirmed.

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