The majority of measures outlined only last month in the Government’s mini-budget have been reversed in this statement ahead of the full fiscal plan announcement on the 31st of October.

The new Chancellor of The Exchequer, Jeremy Hunt has announced this morning that the Government is scrapping “almost all” of the tax measures brought in three weeks ago.

The previously announced energy price guarantee, implemented to tackle soaring energy costs for the public by guaranteeing a cap on bills, will only last until April as was originally planned and not until 2024. At that juncture in April, a Treasury-led review will look into deciding how best to provide support to businesses and households with their energy bills.

In his statement this morning, Hunt revealed “We will reverse almost all the tax measures announced in the growth plan three weeks ago that have not [already started the parliamentary process].”

A summary of the measures scrapped and retained from the mini-budget:

Corporation tax: Cancelling rise from 19% to 25% – SCRAPPED
Income tax: Removal of 45% top rate for high earners – SCRAPPED
Income tax: Cutting basic rate by 1% to 19% – SCRAPPED
Alcohol duty: Freezing rates – SCRAPPED
VAT: Tax-free shopping for non-UK visitors – SCRAPPED
National Insurance: Reversing 1.25% rise – RETAINED
Stamp duty: No duty on first £250,000 of property value – RETAINED
First-time buyers: No duty on first £425,000 of property value – RETAINED

For businesses, this means facing further uncertainty as all eyes will be on the full plan announcement at the end of the month. Namely the short-lasting protection provided by the energy price guarantee will pose businesses all over the country a difficult situation to navigate in April when the price guarantee will end – a survey has been launched by the Government seeking feedback about the energy bill relief scheme which you can find out more about here.
The cost of trading also bears the weight of inflated mortgage rates that combined with increased energy bills have seen outgoings shoot up. Furthermore, the decision to scrap the freezing of planned alcohol duty increases will also hit the hospitality sector hard this winter.

The only measures to remain uncut are the planned cuts on stamp duty and National Insurance which are still set to go ahead. The Chancellor then added that these financial measures and reversals are set to raise an extra £32bn for the Treasury per year.

You can read the statement in full here and stay up to date with other news here. Have your say on the energy bill relief scheme here.