Stamp Duty – Chancellor Hunt reveals what happens next…

New Chancellor Jeremy Hunt has said the limited reduction in stamp duty in England and Northern Ireland announced in the mini budget two weeks ago will continue – although almost all of the other tax cuts announced in the time will be cancelled.

In a video statement this morning, Hunt said: ‘We will continue with the abolition of the health and social care tax and the change in the stamp duty, the non-payroll labor reforms, the new program of purchase without VAT for non-UK visitors and alcohol duty rate freeze.”

But all other changes proposed by Prime Minister Liz Truss and former Chancellor Kwarzi Kwarteng are reversed.

In particular, the reduction of the basic income tax rate to 19% from April 2023 – a flagship Truss policy in the recent past – will no longer happen. The statement read: “The basic rate of income tax will therefore remain at 20% indefinitely. This amounts to around £6 billion a year.”

Hunt also says a Treasury-led review will take place into how people are helped with energy bills from April next year. The goal, he suggests, is to devise a new approach to save taxpayers’ money while targeting support to those who need it most. He adds: “Support for businesses will also go to those most affected and encourage energy efficiency.”

Hunt argues that no government can control markets, but it can give markets certainty about public finances.

He says the plans he is unveiling today will avoid uncertainty ahead of the announcement of the full budget plan at the end of the month – a plan that is expected to include substantial cuts in public spending.

The Chancellor says in his video statement: “As I promised over the weekend, our priority in making the difficult decisions ahead of us will always be the most vulnerable and I remain extremely confident about the Kingdom’s long-term economic prospects. United as we accomplish our mission to grow.”

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