Every Kwasi Kwarteng mini-budget proposal overruled by Jeremy Hunt
Laura Kuenssberg asks Jeremy Hunt ‘who’s in charge?’
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Jeremy Hunt has kicked off his first full working week as Chancellor with a packed Monday, as he has now delivered the first of two financial statements due on October 17. His morning speech has confirmed reports that the Government has planned a series of U-turns designed to override key aspects of Kwasi Kwarteng’s ill-fated September 23 mini-budget. Express.co.uk has picked out some of the most significant announcements from Mr Hunt’s first speech.
Mr Kwarteng had planned to cut income tax for high earners starting next year but earlier this month Ms Truss announced that plan on the 45p rate had been abandoned.
During his mini-budget, the ex-Chancellor also said the Truss Government would also cut the basic rate of income tax by one percentage point in April.
Mr Hunt has reversed this policy proposal, saving an estimated £32billion.
Energy price guarantee
Mr Hunt has announced changes to the energy price guarantee introduced by Mr Kwarteng and Ms Truss.
He has decided to keep the policy universal temporarily, only until April 2023.
After then, the Government plans to target the assistance and cap what people receive.
The new Chancellor previously teased he would have to raise some taxes over the weekend, offering a departure from Mr Kwarteng’s low-tax policies.
He told BBC’s Laura Keunssberg the Government would not lower taxes “as quickly as people thought”, adding that “some taxes are going to go up”.
In total, the measures announced by Mr Hunt will undo approximately two-thirds of the £45billion tax cuts announced by his predecessor.
National Insurance rates
While the announcement has provided a fiscal policy bonfire for mini-budget policies, Mr Hunt will leave one untouched.
Mr Kwarteng reversed the Johnson-era plans to hike National Insurance, amounting to £13billion in total.
The cut has since garnered bi-partisan support, and has survived Mr Hunt’s first budget.
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