New chancellor reverses tax measures in emergency statement

By Tim Aldred

18 Oct 2022

jeremy-hunt.jpg

New chancellor Jeremy Hunt has announced that the government will reverse several key decisions made in a mini-budget just one month ago by his predecessor Kwasi Kwarteng.

September's announcement included various headline-making tax adjustments, but many of these will no longer be implemented.

The increase in corporation tax, from 19 per cent to 25 per cent, will now go ahead in April 2023, despite the previous chancellor announcing that the rise would be cancelled.

The 45 per cent tax rate for high earners will now stay in place. The decrease in the basic tax rate, from 20 per cent to 19 per cent is now on hold indefinitely. It had previously been scheduled for 2024 and had been brought forward in the mini-budget.

Other measures, including freezing duty on alcohol and offering VAT-free shopping for overseas shoppers, have also been cancelled.

Some details of the mini-budget have been retained. National insurance, which increased by 1.25 per cent in April, will still revert to its previous rate in November. The changes in stamp duty have also been retained, meaning it will not apply for properties below £250,000, or £425,000 for first-time buyers.

It is hoped that the new announcements will bring stability to the markets and boost the Treasury's income by £32bn per year.

Matthew Johnson, associate partner at Preston-based accountants and business advisors WNJ, said: “The statement by Jeremy Hunt is a massive U-turn designed to help the UK regain economic credibility. The big question remains whether it will be enough to calm the financial turmoil we have seen in recent days.

“Businesses need stability to be able to plan, invest and grow. It makes it so much more difficult if they have to cope with constant U-turns and uncertainty. We need to see stability and we need to see it quickly. As well as calming the markets, businesses need to see measures that will support the economy as we go through what appears to be tough times ahead.

"And that must include targeted energy cost support beyond April next year. Energy costs, rising inflation and interest rates are all massive concerns and issues that need to be addressed.”

Jane Parry, managing partner of Blackburn-based accountancy PM+M, said: "The last few weeks have been a masterclass in how not to run a country’s finances. The emergency statement is evidence of panic and a realisation that if the Treasury waited until 31st October to set out the detail, then the damage that would have been inflicted could have lasted for over a decade. Hopefully, this is the final nail in the coffin for the very brief era of Trussonomics as her economic vision is left in tatters.

"Jeremy Hunt has at least come into the role as chancellor with an air of contrition and a willingness to not throw every economic orthodoxy out of the window. He understands the markets need stability as does the public and the UK’s business community.

"The decision to refuse to commit to energy costs support beyond April next year with still no sign of a windfall tax on the energy companies benefiting from the current situation beggars belief and will cause uncertainty and concern for households and businesses across the UK.

"Overall, the emergency statement was a sobering insight into quite how bad the national finances have become in the brief period of time since Liz Truss took office and the huge cost of correcting it. That shouldn’t be forgotten. We’ve got another instalment in a few weeks’ time so all we can do is buckle up and hold on tight. I don’t think the turbulence is over just yet."

Enjoyed this? Read more from Tim Aldred

Latest news

1

Graham Engineering sold to a2e Industries Graham Engineering

Graham Engineering sold to a2e Industries

01 Jul 2025

2

Training 2000 celebrate 'Good' rating by Ofsted Training 2000

Training 2000 celebrate 'Good' rating by Ofsted

01 Jul 2025

3

Fox Group acquires J Fisher and Sons Colin Fisher, Paul Fox CEO and Gary Fisher.

Fox Group acquires J Fisher and Sons

01 Jul 2025

4

Beever and Struthers strengthen leadership team with new partners Dean Curtis and Joe Diston

Beever and Struthers strengthen leadership team with new partners

01 Jul 2025

5

Fashion brand CAPO tops the list of the northwest’s fastest-growing private companies Adam Morning and Dan Wilkins from Capo

Fashion brand CAPO tops the list of the northwest’s fastest-growing private companies

27 Jun 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV123 July/August Launch Event
Lancashire Business View magazine launch
Networking
16 Jul 2025

LBV123 July/August Launch Event

Burnley

08:30 - 10:30

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Business Bike Club – July
Chamber Logo1.png.png
LBV Hub Networking
01 Jul 2025 - 01 Jul 2025

Business Bike Club – July

Various, Lancaster, LA

08:00 - 09:30

Chamber Breakfast Networking – July
Chamber Logo1.png.png
LBV Hub Networking
02 Jul 2025 - 02 Jul 2025

Chamber Breakfast Networking – July

St John's Hospice, Slyne Road, Lancaster, LA2 6ST

08:00 - 10:00

The Marketing Metrics that Matter – July 4
LBV Hub Seminars
04 Jul 2025 - 04 Jul 2025

The Marketing Metrics that Matter – July 4

Door4 Office, Burnley Wharf, Burnley, BB11 1JG

08:30 - 11:00

Chamber Summer BBQ
LBV Hub Social
17 Jul 2025 - 17 Jul 2025

Chamber Summer BBQ

The Borough, Dalton Square, Lancaster, LA1 1PP

17:30 - 20:00

Preston Tech Connection: Web3 is Dead. Or is It?
July Longer Banner.jpg.jpg
LBV Hub Networking
29 Jul 2025 - 29 Jul 2025

Preston Tech Connection: Web3 is Dead. Or is It?

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Preston Freelancer Meet-Up: July
Longer July Banner.jpg.jpg
LBV Hub Networking
31 Jul 2025 - 31 Jul 2025

Preston Freelancer Meet-Up: July

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

North West Business Expo 2025
https---cdn.evbuc.com-images-880456273-4862066883-1-original.20241022-105445.jpeg.jpg
LBV Hub Exhibitions
24 Oct 2025 - 24 Oct 2025

North West Business Expo 2025

Bolton Stadium Hotel, Bolton, BL6 6SF

09:00 - 15:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV122 Online Graphic
Subscribe now

Weekly news bulletin