In a statement today, the Chancellor of the Exchequer Jeremy Hunt announced a reversal of most mini budget tax measures from the government’s ‘Growth Plan’ three weeks ago.
The changes are measures that have not started parliamentary legislation and are estimated to raise around £32 billion a year.
Jeremy Hunt said: “No government can control markets but every government can give certainty about the sustainability of public finances.”
Councillor Alex Wade, Liberal Democrat councillor for Hythe West and Langdown, said: “The announcement may remove some poor and uncosted plans but again shows the Conservative government are lacking in will and ideas to help the public and businesses in a cost of living crisis.
“Businesses need support and consistency. This embarrassing government have shown their incompetence in just four weeks.
“It’s totally unacceptable.”
Wade believes the government energy policy review is “papering over the cracks”.
“In the last month, the Government have treated the public with disregard, allowing a Tory party civil war to impact the economy with pensions and mortgages taking a serious hit.”
“It’s totally unacceptable.”
Alex Wade, Liberal Democrat councillor for Hythe West and Langdown
The government “decided to make further changes to the mini-budget” and to announce them ahead of the medium-term fiscal plan in two weeks.
Announced changes include;
- The basic rate of income tax is to remain at 20% indefinitely and not to reduce in April 2023 as originally planned – worth around £6 billion a year.
- Cancelling a new VAT-free shopping scheme for non-UK visitors in Great Britain – worth £2 billion a year.
- Freezing alcohol duty rates for a year from February 2023 has also been dismissed – worth £600 million a year.
The Chancellor gave a detailed statement to Parliament this afternoon designed to “provide confidence and stability.”
Go New Forest said: “We are pleased to see some stability starting to be restored in the economy.”
Claire Donnelly, Director of Admin No.1 said: “It’s safe to say it would be great if decisions could be made and kept to. A promise undelivered does not instil confidence.
“Reversing everything from three weeks ago is a lot of time and money wasted at a time when we should be doing the opposite. I hope we have a government that supports the UK economy now and that they stick to their proposals.”
“Reversing everything from three weeks ago is a lot of time and money wasted.”
Claire Donnelly, Director, Admin No.1
Support remains in the government’s Growth Plan to protect businesses and households from high energy prices from now until April 2023.
A review led by the Treasury will consider how to support the nation with energy bills after April.
Simon Thomas, Lymington and District Chamber of Commerce board member, said: “It’s great to be ahead of the changes but the way in which all this has been handled is somewhat knee-jerking.
“The national insurance cut is still in place however a reverse on corporation tax identifies this announcement has been focused on the workforce rather than business support at this time.”
The Chamber hope the plan enables “focus on what can be done today with the added hope that we retain a route back to normality in coming months.”
Further measures will be published with an OBR (Office for Budget Responsibility) forecast on 31 October.
Local councillors from the Labour and Conservative parties were contacted to comment.
You may also like to read: Highlights from the Prime Minister’s brief press conference.
