17 October 2022
The new Chancellor of the Exchequer, Jeremy Hunt, has released a short emergency statement on the economy, addressing the 23 September mini-budget. Some aspects of the mini-budget have already been scrapped such the income tax relief for 45% bracket earners however the following announcement reverses all but two of the tax measures announced in the mini-budget.
In a video statement, Hunt stated the government wants to avoid uncertainty ahead of the full fiscal plan announcement at the end of the month. The brief summary of changes is designed to give confidence and stability to the markets in uncertain global times.
Measure from Mini-budget that will remain:
- There will be no health and social care levy for NI, as announced before
- The reduction in stamp duty for all buyers will be retained
Points from Mini-budget being scrapped or adjusted:
- The chancellor is reversing almost all tax measures announced in the mini-budget three weeks ago that have not started parliamentary legislation.
- Plans to cut the basic rate of income tax from 20p in the pound to 19p from April next year have been scrapped. The basic rate will remain at 20p indefinitely.
- The new VAT-free shopping scheme for non-UK visitors has been scrapped
- The freeze on alcohol duty rates has been scrapped.
- The Energy Price Guarantee will continue but only last until April 2023. There will be a treasury-led review on how to support bills beyond April 2023. Support will be targeted to households and businesses who most need it.
