Hunt reverses ‘almost all’ of mini-budget tax cuts & cancels IR35 changes

Hunt reverses ‘almost all’ of mini-budget tax cuts, raising an extra £32bn per year

He says a central responsiblity for any government is economic stability.

No government can control the markets. But every government can give certainty about the sustainability of the public finances.

He says, as well as going ahead with the corporation tax increase, he is announcing other changes.

He is doing so now ahead of a staement to MPs.

We will reverse almost all the tax measures announced in the growth plan three weeks ago that have not [already started the parliamentary process].

He says this includes:

• Cuts to dividend tax rates
• The IR35 tax changes
• VAT-free shopping for tourists
• The alcohol duty changes
• Hunt also says the 20% basic rate of tax will remain indefinitely.

He says these measures will raise an extra £32bn per year for the Treasury

Hunt also confirmed that the energy price guarantee, as originally announced, will only last until April.

He says Liz Truss agreed that it would be wrong to make such a long-term spending commitment, when it is unclear what will happen to energy prices in the future.

He says there will then be a review. A more targeted system will then be put in place, he says.

This is the big surprise in today’s announcement. It will probably go down well with the markets. But this cuts the knees under Liz Truss. The only policy that she had left that she was about to take credit for has now gone in the shredder.