Omega Management logo

Factbox: UK axes economic ‘growth plan’ to restore market confidence

LONDON, Oct 17 (Reuters) – New British finance minister Jeremy Hunt on Monday announced almost a complete U-turn on Prime Minister Liz Truss’s plan to boost economic growth through unfunded tax cuts, which had sent international investors bolting for the exit.

Here are some of the policy reversals announced by Hunt, which he said would raise 32 billion pounds ($36.19 billion) for the government finances.

INCOME TAX

Truss had planned for the basic rate of income tax to be cut to 19% from 20% in April 2023, one year earlier than expected. Hunt announced this will now stay at 20% indefinitely.

Register now for FREE unlimited access to Reuters.comRegister

The finance ministry said this will raise around 6 billion pounds a year.

The government will no longer proceed with its plan to remove the highest rate of income tax.

ENERGY BILLS SUPPORT

Hunt said the government’s support for household and business energy bills will only run to April next…

Read more…

Share on facebook
Share on twitter