The new Chancellor of Exchequer, Jeremy Hunt, has ditched almost all of the tax cuts announced just three weeks ago!
The basic rate of income tax will remain at 20p – it won’t be going down to 19p.
The rise in corporation tax, from 19% to 25% will now go head from April 2023.
The divided tax cut will also be abolished, and reforms of IR15 will no longer be going ahead.
However, cuts to stamp duty and National Insurance rise will go ahead as planned.
These moves follow the restoration of the 45% top rate for high earners, which has already been announced.
Reversal of all these measures is estimated to raise £32 billion a year.
The government said it will not change the support for the energy crisis it has announced until April next year. There will be a ‘Treasury-led review of energy support after April. Business support will go to the most affected and there will be incentives for energy efficiency.
The chancellor warned there are more difficult announcements on tax and spending to come.
