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

Lockheed Martin Skunk Works and BAE Systems’ FalconWorks announce strategic collaboration Collaboration between BAE Systems FalconWorks and Lockheed Martin Skunk Works

Lockheed Martin Skunk Works and BAE Systems’ FalconWorks announce strategic collaboration

09 Sep 2025

2

High street retailers urged to ‘take advantage’ of new funded support programme Brian Moore, Lee Johnson, Anne Williamson and Andrew Leeming

High street retailers urged to ‘take advantage’ of new funded support programme

08 Sep 2025

3

Beaverbrooks invest in the high street in difficult conditions Mark Adlestone And Anna Blackburn Beaverbrooks

Beaverbrooks invest in the high street in difficult conditions

08 Sep 2025

4

Preston City Council invests £250,000 in NW Mutual NW Mutual chief exec Dave Burke and Valerie Wise and Matthew Brown from Preston City Council

Preston City Council invests £250,000 in NW Mutual

08 Sep 2025

5

Profit before tax doubles for Eric Wright Group in latest results Jeremy Hartley

Profit before tax doubles for Eric Wright Group in latest results

08 Sep 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
Sub36 Networking - Follow the signs
Sub36 Deaf Village Social1200
Networking
17 Sep 2025

Sub36 Networking - Follow the signs

The Deaf Village, Blackburn, BB2 5EN

10:00 - 12:00

LBV124 September/October Launch Event
MBP Arc Cinema Preston Opening 205
Networking
18 Sep 2025

LBV124 September/October Launch Event

The Arc Cinema, Preston, PR1 2BL

08:30 - 10:30

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

Longridge Soap Box Derby
Screenshot 2025-06-10 090035.png.png
LBV Hub Fundraisers
14 Sep 2025 - 14 Sep 2025

Longridge Soap Box Derby

Berry Lane, Longridge, PR3 3WH

10:00 - 16:30

Preston Tech Connection - The Ultimate Tech Quiz!
Preston Tech Connection Sept 25.png.png
LBV Hub Networking
16 Sep 2025 - 16 Sep 2025

Preston Tech Connection - The Ultimate Tech Quiz!

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:00

The Business Network Central & East Lancashire
LBV Hub Networking
17 Sep 2025 - 17 Sep 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

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

Preston Freelancer Meet-Up: September
Sept Freelancer (1).png.png
LBV Hub Networking
23 Sep 2025 - 23 Sep 2025

Preston Freelancer Meet-Up: September

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Your Business, Your Region: Making sense of devolution and Local Government Reorganisation
Chorley Council breakfast event new
LBV Hub Networking
23 Sep 2025 - 23 Sep 2025

Your Business, Your Region: Making sense of devolution and Local Government Reorganisation

Worden Hall, Leyland, PR25 3DH

08:00 - 11:00

Speed Networking with BNI
2.png.png
LBV Hub Networking
24 Sep 2025 - 24 Sep 2025

Speed Networking with BNI

Chorley Football Club, Chorley, PR7 3DU

16:00 - 19:00

The Marketing Meetup IRL: Lancashire - September
TMM Lancashire
LBV Hub Networking
25 Sep 2025 - 25 Sep 2025

The Marketing Meetup IRL: Lancashire - September

Chorley, PR7 2SL

18:00 - 20:00

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 LBV 123 Online Graphic
Subscribe now

Weekly news bulletin