11:42 AM, 17th October 2022, About A year ago 8
Under pressure from the nervous financial markets and having been locked away in Chequers at the weekend with PM Lizz Truss, the Chancellor of the Exchequer, Jeremy Hunt has given an emergency statement to the country.
This is an effort to stabilise the markets and inject some confidence, credibility and trust globally in the UK and its financial institutions as a safe market to purchase debt.
The basic rate of income tax will now remain at 20% indefinitely and not be cut to 19p in April 2023
Corporation tax will rise as planned in April 2023 from 19% to 25%
The top rate of income tax over £150,000 will not be cut and will remain at 45%
The Energy price cap will now only be guaranteed for homes and businesses until April 2023 and will be reviewed to decide how a more cost-efficient measure can be put in place for the longer term and not expose the economy to the cost of volatile energy prices.
Dividend tax rates will no longer be cut
Off-payroll working reforms will be reversed,
A new VAT-free shopping scheme for non-UK visitors
Alcohol duty rates have been unfrozen
Jeremy Hunt said: “As I promised at the weekend, our priority in making the difficult decisions that lie ahead will always be the most vulnerable and I remain extremely confident about the UK’s long-term economic prospects as we deliver our mission to go for growth.”
Hunt went on to say for the benefit of the markets that the UK would always pay its way.
The yield on 30 year Bonds has fallen further today post statement to 4.35% and five-year Bond prices which affect more closely similar term fixed rate mortgages fell to 3.86%
Currently Sterling has rallied to $1.13, but this will remain a volatile market.