Something which affects us all….The Chancellor has made a statement just after 11am this morning, Monday 17th October releasing new plans on tax, energy assistance and taking action against the previous controversial mini budget.
The chancellor has announced plans this morning to scrap plans to cut the basic rate of income tax from 20p in the pound to 19p from April next year.
He says it is not right to borrow to fund this tax cut. The rate will remain indefinitely at 20p until economic circumstances allow it to be cut.
The announcement is just one of a massive u turn of the recent “mini budget”, which affects most people in the UK. The chancellor is reversing almost all tax measures announced in the growth plan three weeks ago that have not started parliamentary legislation, he has just said in a video statement.
What about help for Energy Bills?
The planned and announced government help for bills for the next 2 years is to be scaled back.
Jeremy Hunt says a Treasury-led review will take place into how people are helped with energy bills from April 2023. The objective is to design a new approach to save taxpayers money while targeting support to those most in need, he says. Business support will also go to those most affected and will incentivise energy efficiency.
What about the NI increases?
The abolition of the 1.25% health and social care levy and the stamp duty change will continue.
The Chancellor commented that the reversal of the mini budget will deliver confidence and stability and provide assurance to financial markets to help regain confidence.