17 October 2022

Desperately Seeking Confidence and Stability

The chancellor has reversed almost all of the tax measures announced in the growth plan.

Jeremy Hunt acknowledged that whilst Government can't control the markets, they can introduce certainty over the sustainability of public finances.  As such the chancellor provided an early statement in which he reversed almost all of the tax measures introduced just three weeks ago.

Three headline changes are:

Corporation Tax - planned cut has been abandoned.

Income Tax - reduction to 19% has been shelved, the lower rate will remain at 20% indefinitely.

Energy Price Guarantee - support to households from now until April is unchanged. Beyond that, there will be a Treasury-led review to determine further support. Future support for businesses will be targeted towards those most affected.

The Medium-Term Fiscal Plan is due to be revealed on 31 October.

Read further details of the chancellor's statement on the link below.