[UK] Key takeaways from chancellor’s tax and energy bill announcement

[UK] Key takeaways from chancellor’s tax and energy bill announcement
17 Oct 2022

Jeremy Hunt, the UK's new chancellor, has announced a series of U-turns and changes to the government's economic policy, Yorkshire Live reports.

Mr Hunt replaced Kwasi Kwarteng as Chancellor of the Exchequer only last week after the government's mini-budget led to the collapse of the value of the pound and economic turmoil.

Now the new chancellor has announced a number of reversals including U-turns on energy bills, income tax and other tax cuts the government planned to introduce.

Energy Bills

One of the main announcements was that the energy support scheme that was just put in place will now end in April. Originally it was set to go on for two years but now a Treasury-led review will reportedly be carried out to determine a new means of support which costs less money but will ensure "enough support for those in need".

Mr Hunt said, "The biggest single expense in the growth plan was the energy price guarantee.

"This is a landmark policy supporting millions of people through a difficult winter and today and today I want to confirm that the support we are providing between now and April next year will not change."

For Brits, this means support for energy bills will only last for the next six months. The price cap is also likely to rise meaning you may end up paying a lot more, in the absence of the support scheme.

It is not yet known what form support will take after April.

Income Tax and other tax cuts

The government also announced U-Turns on tax cuts including the basic rate of income tax. It is to remain at 20 per cent rather than decreasing to 19 per cent, as previously announced. This means Brits will no longer receive any cut to the basic rate of income tax and will still have to pay the full amount.

Chancellor Jeremy Hunt reportedly said that he supported the plan as it was "a deeply conservative value" that people should "keep more of the money they earn". However, the policy was being scrapped and income tax would remain at 20 per cent until "economic circumstances allow for it to be cut".

Other tax cuts the chancellor has done away with include the cuts to dividend tax rates, the reversal of off-payroll working reforms, the VAT-free shopping scheme for non-UK visitors and the freeze on alcohol duty rates.


Source: Yorkshire Live

(Quotes via original reporting)

Jeremy Hunt, the UK's new chancellor, has announced a series of U-turns and changes to the government's economic policy, Yorkshire Live reports.

Mr Hunt replaced Kwasi Kwarteng as Chancellor of the Exchequer only last week after the government's mini-budget led to the collapse of the value of the pound and economic turmoil.

Now the new chancellor has announced a number of reversals including U-turns on energy bills, income tax and other tax cuts the government planned to introduce.

Energy Bills

One of the main announcements was that the energy support scheme that was just put in place will now end in April. Originally it was set to go on for two years but now a Treasury-led review will reportedly be carried out to determine a new means of support which costs less money but will ensure "enough support for those in need".

Mr Hunt said, "The biggest single expense in the growth plan was the energy price guarantee.

"This is a landmark policy supporting millions of people through a difficult winter and today and today I want to confirm that the support we are providing between now and April next year will not change."

For Brits, this means support for energy bills will only last for the next six months. The price cap is also likely to rise meaning you may end up paying a lot more, in the absence of the support scheme.

It is not yet known what form support will take after April.

Income Tax and other tax cuts

The government also announced U-Turns on tax cuts including the basic rate of income tax. It is to remain at 20 per cent rather than decreasing to 19 per cent, as previously announced. This means Brits will no longer receive any cut to the basic rate of income tax and will still have to pay the full amount.

Chancellor Jeremy Hunt reportedly said that he supported the plan as it was "a deeply conservative value" that people should "keep more of the money they earn". However, the policy was being scrapped and income tax would remain at 20 per cent until "economic circumstances allow for it to be cut".

Other tax cuts the chancellor has done away with include the cuts to dividend tax rates, the reversal of off-payroll working reforms, the VAT-free shopping scheme for non-UK visitors and the freeze on alcohol duty rates.


Source: Yorkshire Live

(Quotes via original reporting)

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