A mini-Budget is expected to take place next week as new Chancellor Kwasi Kwarteng delivers his first financial statement.

Government plans to hold a ‘fiscal event’ earlier in the month were thrown into doubt following the death of Queen Elizabeth II, according to reports from several news outlets.

BBC News has reported that Kwarteng will deliver his statement on Friday 23 September, with Parliament remaining suspended for the mourning period until next Thursday.

The mini-Budget is likely to involve several of the tax cuts promised by Liz Truss during her leadership campaign, in an attempt to get a grip on the cost of living crisis, record levels of inflation and soaring household energy bills.

Among the rumoured changes that could affect the consumer finance space, the new Prime Minister’s plans could see a reversal of the national insurance hike, a VAT cut from 20% to 15%, the removal of green levies on energy bills, as well as a review of the current inheritance tax (IHT) system.

“We’ll see a major change of direction in this mini-Budget, as Kwarteng drives his growth agenda, fuelled by deregulation and tax cuts, in the belief it will ease the cost of living crisis and boost growth,” commented senior personal finance analyst at Hargreaves Lansdown, Sarah Coles.

“But while it’s likely to offer immediate easing of the squeeze on household budgets, only time will tell whether it will improve the landscape for good, or steer us into dangerous territory.

“Tax cuts will help us all in the immediate future, cutting our outgoings during a time of runaway inflation. It is being done in the belief that this will then help people spend more and companies invest more, both of which would support growth. However, this comes at a cost, and there’s the risk it could end up damaging our financial resilience over the longer term.

“There’s also the question of whether there will be enough in this announcement to support those on the lowest incomes, or to help us build our long-term financial resilience.”

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