Jeremy Hunt undoes ‘almost all’ tax cuts from Liz Truss’s mini-budget
It's in a bid to stabilise the economy.
Jeremy Hunt has revealed plans to reverse ‘almost all’ of the tax measures announced in the mini-budget just three weeks ago.
The Chancellor, who was appointed by the Prime Minister last Friday, has confirmed he is ditching almost all of the economic plans laid out by Kwasi Kwarteng.
That includes the planned cut to income tax, as he laid out his plans to stabilise public finances in an emergency statement.
Mr Hunt also said that the Energy Price Guarantee, which was meant to help households with energy bills for the next two years, will now only last until April.
He said that there are plans to find a ‘new approach’ that will cost the tax-payer ‘significantly less’.
The Chancellor said that his drastic tearing-up of the former mini-budget will be worth up to £32 billion a year.
He issued his emergency statement this morning after weeks of turmoil following Mr Kwarteng’s announcement, which was nicknamed a ‘Kami-Kwasi Budget’.
Mr Hunt said today: “Our priority in making the difficult decisions that lie ahead will always be the most vulnerable and I remain extremely confident about the UK’s long-term economic prospects as we deliver our mission to go for growth.”
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He continued: “Growth requires confidence and stability and the United Kingdom will always pay its way.”
“This government will therefore take whatever tough decisions are necessary to do so.”
Outlining his plans, he said: “We will reverse almost all the tax measures announced in the growth plan three weeks ago that have not started parliamentary legislation.
“So whilst we will continue with the abolition of the health and social care levy and stamp duty changes, we will no longer be proceeding with the cuts to dividend tax rates, the reversal of off-payroll working reforms introduced in 2017 and 2021, the new VAT-free shopping scheme for non-UK visitors or the freeze on alcohol duty rates.”
Featured image: HM Treasury