UK's new Chancellor Jeremy Hunt has reversed almost all tax cuts announced in the mini-budget presented a few weeks ago. Hunt also limited the period of the energy price support programme to six months instead of the originally announced period of two years.
“We will reverse almost all the tax measures announced in the growth plan three weeks ago that have not started parliamentary legislation,” Hunt was quoted saying by The Guardian.
He added that the government would proceed with the abolition of the health and social care levy and stamp duty changes. Hunt said the basic rate of income tax could remain at 20p in the pound until economic conditions allowed a reduction, the publication reported.
Hunt claimed that tax changes would save about £32bn a year. On the energy price guarantee programme, the Treasury Chief said that it was a landmark programme and it would be universal only for six months, till April, instead originally announced period of two years.
“This is a landmark policy supporting millions of people through a difficult winter and today I want to confirm that the support we are providing between now and April next year will not change,” The Guardian reported quoting Hunt. “But beyond that, the prime minister and I have agreed it would not be responsible to continue exposing public finances to unlimited volatility in international gas prices,” he said. The two-year energy price cap guarantee was budgeted to cost the exchequer about £80bn.
Prime Minister Liz Truss appointed Jeremy Hunt as Chancellor on Friday, sacking his predecessor Kwasi Kwarteng for his mini-budget which caused unprecedented turmoil in the market. :Truss faced severe backlash for Kwasi budget's unfunded tax cuts which forced Bank of England to act to prevent an economic crisis.
