Politics

What did Jeremy Hunt announce in his financial statement and how are people reacting?

Jeremy Hunt reverses income tax break in U-turn on Truss’s mini-Budget
Indy

After Liz Truss sacked her chancellor Kwasi Kwarteng for making a mini-budget that tanked the pound and spooked the markets, then u-turned on a bunch of plans, delivered a rushed press conference, then appointed Jeremy Hunt to clean up her mess, the nation waited anxiously to see what the Tories would do next to troll the nation.

The country didn't have to wait for long and today Hunt decided to make a financial statement outlining the government's new plans for the economy, announcing further u-turns (which seem to be the defining characteristic of Truss's premiership) and changes to energy plans.

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Here are the key things Hunt had to say:

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Tax plan u-turns

Hunt said he was reversing the 1p cut in the basic rate of income tax announced last month.

Instead, the basic rate will remain at 20p “indefinitely”.

Hunt also said that he was ditching cuts to dividend tax rates, a reversal of off-payroll working reforms introduced in 2017 and 202 and the new VAT-free shopping scheme for non-UK visitors.


Energy bills

Energy bill support for all households to ensure annual bills don't climb past £2,500 will only last until April. Then, there will be a review to find a “new approach” to target support at those worst off.

The chancellor added that the government’s priority in moving forward is helping those who are “most vulnerable”.


Cuts

Speaking about government departments, Hunt said "some areas of spending will need to be cut."


Reaction

Responding to his announcement, politicos took to Twitter to share their thoughts:

If these plans stay in place for more than a month, Hunt will have done a better job than Kwarteng at least.

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