Jeremy Hunt, UK’s finance minister on Monday revealed the government will be revising almost all the tax cut plans announced earlier. Here’s everything you need to know about the matter.
Jeremy Hunt reveals new information on tax cut plans
On Monday, UK’s finance minister stated the government will revisit nearly all tax cuts announced in the mini-budget session. The measures were first introduced by Kwasi Kwarteng, the former finance minister, and were met with severe criticism. They will also be revisiting issues on the rise of National Insurance and reliefs on stamp duty paid on house purchases.
Additionally, the lowering of the basic rate of income tax may also face the axe. Jeremy Hunt explained, “indefinitely until economic circumstances allow for it to be cut”. He also announced that the “energy price guarantee” will be reconsidered for households and businesses. The measure is expected to cost the government about $67 million.
More on UK’s change to tax cuts
In the aftermath of the UK’s mini-budget, the pound dropped to its lowest ever against the US dollar. The International Monetary Fund (IMF) severely criticized the tax cuts in addition to the public and political circles. In his statement on Monday. However, on Monday, the pound was successful in finding some stability. It jumped by over one percent, reaching $1.1293.
Jeremy Hunt explained he is giving almost priority to”economic stability” and scraping the unfunded tax cuts as promised by Kwarteng on September 23. “There will be more difficult decisions I’m afraid on tax and spending,” added Hunt. The markets are responding positively to his statement. Additionally, the central bank stated the markets penning, aiming to help pension funds battle higher collateral demands. The move helped in enabling a “significant increase in the resilience of the sector”.