THE WELSH Government was not informed beforehand about the changes announced by the chancellor in this morning’s mini-budget, it has said.

Chancellor Kwasi Kwarteng announced the changes in Parliament this morning, however the Welsh Government has said it had “no prior engagement” from the UK Government over the changes and how they will affect Welsh budgets.

The changes included reducing the basic rate of income tax to 19p in April, raising the threshold for stamp duty – which applies only to England and Northern Ireland, and the reversal of the planned 1.25 per cent National Insurance rise.

The 45p tax rate for the highest earners will be scrapped, however, meaning from April there will only be the basic (19p) and the higher (40p) rate tax band.

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After the announcement, a Welsh Government spokesperson said: “We have had no prior engagement from the UK Government on any of the changes in today’s statement.

“We will be looking at the detail of the UK Government’s announcements and their impact on our budget.”

The changes to stamp duty would mean people in England and Northern Ireland will pay no stamp duty on the first £250,000 of a property’s value – up from £125,000, while first-time buys will pay no stamp duty on the first £425,000 – up from £300,000.

In Wales, this is devolved, with land transaction tax replacing stamp duty land tax in April 2018.

Currently, the threshold for people paying land transaction tax is at £180,000 – if you don’t own any other properties – and there is no relief for first-time buyers.

The Welsh Government also has partial control over income tax, with 10p from each of the bands going to the Welsh Government.

It is not yet clear how the chancellor’s announcement will affect this.

Wales’ finance minister Rebecca Evans said the announcement failed to provide enough support to lower income households in the cost of living crisis, and will “embed unfairness” across the UK.

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“Instead of delivering meaningful, targeted support to those who need help the most, the chancellor is prioritising funding for tax cuts for the rich, unlimited bonuses for bankers, and protecting the profits of big energy companies,” she said.

“Instead of increasing funding for public services in line with inflation, we get a chancellor blithely ignoring stretched budgets as public services find their money is simply not going as far as it did before.

“Instead of a comprehensive growth plan we get a missed opportunity to invest in the future.

“We could have seen a bold programme of investment in new green energy, tackling rising bills and improving our energy security in the long-term to help stop this kind of crisis happening again.

“Here in Wales we have provided around £400 million to help people pay essential bills, including targeted support for those with lower incomes. But the majority of key levers for support lie in the hands of the UK Government and we simply cannot afford more of the same.

“We cannot afford a UK Government that does not understand or care about the severe challenges people are facing.”

The chancellor also announced the planned rise in corporation tax – from 19 per cent to 25 per cent – has been cancelled, limits on bankers’ bonuses have been scrapped, and the rules around universal credit have been tightened – reducing benefits if people don't complete job search commitments.

Also announced was VAT-free shopping for overseas visitors to be brought in, while the planned increases on alcohol duty have been cancelled.