Contact Us: 0207 017 8880

On Monday October 17th, 2022, the new Chancellor of the Exchequer, Jeremy Hunt, laid out his plan to reverse almost every tax cut set out by his predecessor Kwasi Kwarteng 3 weeks ago. This plan has been laid out 2 weeks earlier than anticipated amid the markets’ call for stability from the current government.

Key Takeaways from Hunt’s Statement:

  1. Energy relief has been scaled back to 6-months; a Treasury review has been commissioned to assess relief past April.
  2. Reversing tax cuts

Energy Relief

The Chancellor has made the decision to backtrack on its commitment to the two-year energy relief pledge. This has been reduced to six-months of relief. Hunt has sanctioned a Treasury-led review to determine the extent of relief that should be provided past the six-month window. Hunt stated that support to businesses will be provided to those most in need of support.

The Fed calls for the government to support small businesses during this review and provide the support needed to see them through this cost-of-living crisis. The Fed will continue to campaign for this in the coming months.

Reversed Tax Cuts

Hunt declared that the government will not proceed with the initial plan to cut corporation tax to 19%. This tax will remain at 25%.

The freeze on alcohol duty will be scrapped under the new plan.

The basic rate of income tax will not be cut and will remain at 20p till the economic situation allows for it to be dropped to 19p.

Hunt pledged to provide a more detailed medium-term fiscal plan alongside the economic forecast from the Office of Budget Responsibility on October 31st, 2022.

The Fed will continue to campaign for policy that supports business and calls for the government to extend energy relief for businesses past April.

Related Articles

Related Articles

With just weeks to go until doors open to National Convenience Show, part of the UK Food & Drink Shows (29th April – 1st May), those planning a visit are being urged to register for their free badge here ahead...
Read More

Fed welcomes government’s new retail crime crackdown with separate offence for assaulting shopworkers

Independent retailers have welcomed today’s (Wednesday’s) announcement from Prime Minister Rishi Sunak that assaulting a shopworker is to be made a separate offence. Muntazir Dipoti, the National President of the Federation of Independent Retailers (the Fed), said: “We have been...
Read More

Tenby store uses AI technology to improve employee wellbeing and to deter crimes

New AI theft detection software that Tenby store owners Vince and Fiona Malone introduced in September 2023 has improved staff efficiency and increased staff safety and well-being as well as reducing theft, the delighted couple have revealed. The solution is...
Read More