Jeremy Hunt axed a series of tax cuts on Monday and signalled the energy support package will be more targeted next year as he raced to save Britain from more economic mayhem.
In an emergency statement, the new Chancellor ripped up large parts of the “Kamikwasi” mini-budget with a blitz of U-turns as Liz Truss battled to remain Prime Minister.
“We will reverse almost all the tax measures announced in the growth plan three weeks ago that have not started parliamentary legislation,” he said.
The key points were:
- Plans to reduce the basic rate of income tax from 20 per cent to 19 per cent in April next year were scrapped
- Plans for new VAT-free shopping for international tourists scrapped
- Help with energy bills for all households will only last until April, with Mr Hunt announcing a review to look at a “new approach” to target support at those worst off after that
- Planned cut to stamp duty will continue, as will the reversal of the 1.25 percentage point increase in national insurance contributions
