Chancellor Jeremy Hunt has reversed the 1p cut in the basic rate of income tax announced by Kwasi Kwarteng last month, in the latest major U-turn on Liz Truss’s mini-Budget.
In a move saving £5bn a year, Mr Hunt announced that he was not only reversing the decision to bring the cut to 19p forward to 2023, but also ex-chancellor Rishi Sunak’s promise to introduce the cut in 2024.
