Take-home pay will go down and energy bills will go up as the Chancellor Jeremy Hunt has announced the Government will scrap plans to reduce the basic rate of income tax from 20% to 19% in April next year, a move that had been forecast would cost the Exchequer almost £5.3 billion in 2023-24.
Help with energy bills for all households will now only last until April, with Jeremy Hunt announcing a review to look at a “new approach” to target support at those worst off after that. The price cap, which is keeping down energy bills, was due to last two years.
The Government will also ditch plans for new VAT-free shopping for international tourists, Mr Hunt said. Mr Hunt scrapped almost all the tax plans announced by previous Chancellor Kwasi Kwarteng just weeks ago.
