New British Chancellor of the Exchequer Jeremy Hunt on Monday announced that the government would scrap plans to reduce the basic rate of income tax.
Hunt said that the tax would be scraped from 20 per cent to 19 per cent in April 2023, a move that had been forecast would cost the Exchequer almost 5.3 billion pounds ($6 billion) in 2023-24.
According to the chancellor, help with energy bills for all households will only last until April, as a review to look at a “new approach” to target support at those worst off after that was ongoing.
The government will also ditch plans for new VAT-free shopping for international tourists, Hunt said.
Hunt confirmed he was ditching many of the measures in the mini-budget.
In an emergency statement, he said “we will reverse almost all the tax measures announced in the growth plan three weeks ago that have not started parliamentary legislation.
“So whilst we will continue with the abolition of the health and social care levy and stamp duty changes, we will no longer be proceeding with the cuts to dividend tax rates.
“There would also be a tax halt on the reversal of off-payroll working reforms introduced in 2017 and 2021, the new VAT-free shopping scheme for non-UK visitors or the freeze on alcohol duty rates.”
