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UK finance minister Hunt reverses most of 'mini-budget'

Published 10/17/2022, 06:36 AM
Updated 10/17/2022, 06:40 AM
© Reuters. FILE PHOTO: British Chancellor of the Exchequer Jeremy Hunt arrives at the BBC, in London, Britain, October 15, 2022. REUTERS/Henry Nicholls

LONDON (Reuters) - British finance minister Jeremy Hunt on Monday tore up almost all parts of Prime Minister Liz Truss's proposed tax cuts, saying the measures would help the government raise around 32 billion pounds ($36.2 billion) a year.

Below are the highlights from Hunt's announcement:

REVERSE ALMOST ENTIRE MINI-BUDGET

"We will reverse almost all the tax measures announced in the Growth Plan three weeks ago that had not started parliamentary legislation," Hunt said.

ECONOMIC STABILITY

"A central responsibility for any government is to do what's necessary for economic stability. This is vital for businesses making long term investment decisions and for families concerned about their jobs, their mortgages and the cost of living.

"No government can control markets, but every government can give certainty about the sustainability of public finances, and that is one of the many factors that influence how markets behave."

RAISING 32 BILLION POUNDS

"Taken together with the decision not to cut corporation tax and restoring the top rate of income tax the measures I've announced today will raise every year around 32 billion pounds."

INCOME TAX

"I've decided that the basic rate of income tax will remain at 20% and it will do so indefinitely until economic circumstances allow for it to be cut."

REVIEW INTO FURTHER ENERGY BILLS SUPPORT

© Reuters. FILE PHOTO: British Chancellor of the Exchequer Jeremy Hunt arrives at the BBC, in London, Britain, October 15, 2022. REUTERS/Henry Nicholls

"I'm announcing today a Treasury-led review into how we support energy bills beyond April next year. The objective is to design a new approach that will cost the taxpayer significantly less than planned, whilst ensuring enough support for those in need."

($1 = 0.8842 pounds)

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