The abolition of the health and care levy is now the only major part of the discredited mini-Budget to survive after new Chancellor Jeremy Hunt today junked most of the other tax cuts in a dramatic announcement.
Mr Hunt said that it was ‘an essential responsibility’ for government to do ‘what is necessary’ for economic security and ‘to give certainty about the sustainability of the public finances’ for financial markets.
In advance of a Commons statement on October 17 ‘to reduce unhelpful speculation’ Mr Hunt announced that a reduction in dividend tax rates and income tax from 20% to 19% would be abandoned along with changes to IR35 rules.
He also said the universal energy price cap would only last until April 2023 and a Treasury review would examine how to limit energy costs beyond that date. The changes follow the recent scrapping of the cut in top rate income tax and cuts to corporation tax.
Along with the health and social care levy cuts to national insurance and stamp duty will remain.
However Mr Hunt also warned there would be more ‘more difficult decisions on tax and spending’ to get debt falling as a percentage of the economy and that ‘some areas of spending will need to be cut.’
This article was originally published by The MJ (£).
