After his emergency fiscal declaration this morning, the new chancellor declared his plans in the House of Commons.
He is reversing “almost all” tax measures announced in the growth plan three weeks ago. Hunt said, “We will no longer be proceeding with the cuts to dividend tax rates, the reversal of off-payroll working reforms, the new VAT-free shopping scheme for non-UK visitors or the freeze on alcohol duty rates”.
The plans to reduce corporation tax were rescinded by the new chancellor. Plans to cut the basic income tax rate from 20p per pound to 19p have been scrapped by the chancellor. This will take effect from April next year. Until economic circumstances permit, the rate will remain at 20p indefinitely.
Shadow Chancellor Rachel Reeves accused Hunt of “austerity” and said that the only thing he has kept from Kwarteng’s mini-budget is bankers bonuses.
Alison Thewliss from the SNP and Ed Davey (leader of the Lib Dems) criticised Hunts’ plan. They pointed out how Hunts’ plans to reduce aid for energy bills were announced without considering imposing a windfall tax.
There was however, far less anger in the Commons compared with the announcement of mini budget three weeks ago, with many Conservative MP’s saying that they are grateful for Hunt’s so far successful endeavours to calm the markets.
