Hunt scraps almost all Growth Plan policies
17 October 2022
In a press statement, Jeremy hunt has announced major revisions to the Growth Plan, initially announced by ex-chancellor, Kwasi Kwarteng.
The third National Insurance change this year will go ahead as planned, and the health and social care levy for 2023/24 remains abolished. The stamp duty land tax will also remain cut.
The changes announced are:
- the basic rate of income tax will remain at 20% indefinitely. This will only change if the economic outlook is stable enough for this to be affordable for the Treasury
- dividend tax will no longer be cut by 1.25 percentage points
- the planned rise in corporation tax will be re-instated, taking it up to 25% from April 2023
- the 2017 and 2021 off-payroll working reforms will remain in place
- VAT-free shopping scheme for non-UK visitors will no longer go ahead
- alcohol duty will be reviewed as usual, no freeze will take place.
Also announced was a plan to review the energy bill support from April 2023, after initially pledging support for up to two years.
The HM Treasury GOV.UK page has provided a news story to accompany the press briefing. Hunt will appear in the House of Commons later today to present the plans to MPs.
Further changes to fiscal policy are still expected on 31 October 2022 and government departments will be asked to find efficiencies within their budgets to support the plans.
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