Money expert Martin Lewis has shared his verdict on the Government's latest economic announcement. New Chancellor Jeremy Hunt confirmed he was ditching many of the measures in the mini-budget, including the planned cut to income tax, in an statement on October 17.
He also outlined that help with energy bills for all households would be scaled back and now only last until April. Mr Hunt said a review would look at a “new approach” to target support at those worst off after this period.
Prime Minster Liz Truss had previously set out plans to freeze energy bills at an average of £2,500 a year for two years. Mr Lewis said the previous plans, which shocked financial markets, had been 'hunted down' and were now 'gone'.
Read more: Martin Lewis advises people to use 'stoozing' technique to get free money
"Hunt says energy price guarantee to remain until April. After that treasury review on how to support energy prices. Plus all mini budget tax measures (barring stamp duty and NI cut) now not happening, so no cut in basic rate. Trussenomics totally hunted down and gone," Mr Lewis posted to Twitter.
"While energy intervention was desperately needed - a universal energy price guarantee was always expensive and poorly targeted. The post-April support will still need reach a decent way up the net and support middle earners, energy rates are still huge."
The finance guru summed up his view that the country's economic woes had started with Truss' energy bill policy. Mr Lewis added: "Its arguable the entire economic problems Liz Truss has, stems back to her energy bill policy. Let me explain, in 5 points. During the zombie government, due to leadership contest, even though it was blindingly obvious energy intervention was needed, no plans were made or promised.
"Yet campaign pledges on tax cuts were made at that point, possibly without factoring in the cost of the coming unavoidable energy intervention. Liz Truss at the time also strongly poo-pooed handouts to differentiate from Rishi Sunak scheme
"When they hit government and it became blindingly obvious that intervention was needed. They needed to do it at breakneck speed, with urgent meets with the energy firms. The only route without it being called 'a handout' was a universal reduction - the most expensive intervention. Yet they still went ahead with the other promises too, and the combination of both seems to be what caused the house of cards to tumble."
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