Chancellor announces further U-turns to mini-budget

Jeremy Hunt announces more U-turns to the mini-budget including scrapping an income tax cut, as well as an early end in April to the energy price guarantee.

In my first few days in the job i’ve held extensive discussions with the prime minister cabinet colleagues the governor of the bank of england the obr the head of the debt management office treasury officials and many others the conclusion i’ve drawn from those conversations is that we need to do more more quickly to give certainty to the markets about our fiscal

Plans and show through action and not just words that the united kingdom can and always will pay our way in the world we’ve therefore decided to make further changes to the mini budget immediately rather than waiting until the medium-term fiscal plan in two weeks time in order to reduce unhelpful speculation about those plans mr speaker i’m very grateful for your

Agreement on the need to give the markets an early brief summary this morning but i welcome the opportunity to give this house details of those decisions now we’ve decided on the following changes to support confidence and stability firstly the prime minister and i agreed yesterday to reverse almost all the tax measures announced in the growth plan three weeks

Ago that have not been legislated for in parliament so we will continue with the abolition of the health and social care levy changes to stamp duty the increase in the annual investment allowance to a million pounds and the wider reforms to investment taxes but we will no longer be proceeding with the cuts to dividend tax rates saving around a billion pounds a

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Year the reversal of the off payroll working reforms introduced in 2017 and 2021 saving around 2 billion pounds a year the new vat-free shopping scheme for non-uk visitors saving a further two billion pounds a year or the freeze on alcohol duty rates saving around 600 million pounds a year second the government is currently committed to cutting the basic rate of

Income tax to 19 in april of 2023 it is a deeply held conservative value a value that i share that people should keep more of the money they earn which is why we have continued with the abolition of the health and social care level but at a time when markets are asking serious questions about our commitment to sound public finances we cannot afford a permanent

Discretionary increase in borrowing worth 6 billion pounds a year so i’ve decided that the basic rate of income tax will remain at 20 and it will do so indefinitely until economic circumstances allow for it to be cut taken together with the decision not to cut corporation tax and restoring the top rate of income tax the measures i’ve announced today will raise

Around 32 billion pounds every year the third step i’m taking today mr speaker is to review the energy price guarantee that was the biggest single expense in the growth plan and one of the most generous schemes in the world it’s a landmark policy for which i pay tribute to my predecessor my right honorable friend from spellthore and we’ll support millions of

People through a difficult winter reducing inflation by up to five percent so i confirmed today that the support we are providing between now and april next year will not change but beyond next april the prime minister and i have reluctantly agreed it would not be responsible to continue exposing the public finances to unlimited volatility in international gas

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Prices so i’m announcing today a treasury-led review into how we support energy bills beyond april next year

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Chancellor announces further U-turns to mini-budget By Sky News