This morning, Jeremy Hunt has scrapped nearly all tax cuts announced in last month’s mini-budget, which include removing a proposed cut to corporation tax and a deferred 1p cut to income tax
Mr Hunt, who replaced Kwasi Kwarteng as Chancellor on Friday, brought forward his fiscal statement by two weeks in an attempt to stabilise the markets.
So what did Mr Hunt do a U-turn on:
- Income tax to remain at 20%, rather than being reduced to 19% from April 2023
- The cancelling of the Corporation tax increase. So Corporation tax is still planned to increase to 25%
- The energy price guarantee will only extend until April, not for two years as originally planned
- No cuts to dividends tax rates
- scrapped the repeal of IR35 for off-payroll working rules introduced in 2017 and 2021
- No new VAT-free shopping scheme for overseas visitors, and no freeze on alcohol duty rates
- The cut to national insurance is reportedly still set to go ahead
More will follow on the budget still planned for 31 October 2022