The last few weeks have seen a huge number of economic changes in the UK, with a mini-Budget published at the end of September and then, subsequently, being overturned. The question is, how will the new changes affect you?
Recently, Jeremy Hunt took over from Kwasi Kwarteng as the new chancellor of the exchequer (1) after the pound plummeted on the markets. He did not waste any time making changes and revealed many of the recently announced mini-Budget will be scrapped.
He was reported by Sky News (2) as saying: “The government has today decided to make further changes to the mini Budget, and to reduce unhelpful speculation about what they area, we’ve decided to announce these ahead of the medium-term fiscal plan.”
For instance, there will be no cuts to dividend tax rates, nor will the basic rate of income tax be reduced to 19 per cent. Additionally, there will be no freeze on alcohol duty rates, and tourists will have to continue to pay VAT when shopping in the UK.
He also stated the energy price cap of £2,500 for an average household will only be guaranteed until April 2023, instead of two years.
This will be disappointing for lots of homeowners to hear, who are already struggling to pay for their gas and electricity bills and may be in need of debt solutions. However, Mr Hunt reassured the public that: “The most important objective for our country right now is stability.”
If you are struggling with debt as a result of the cost of living challenges you can contact the Fresh Start UK team today.
References:
- https://news.sky.com/story/chancellor-reverses-almost-all-tax-cuts-of-mini-budget-and-says-energy-bills-support-scheme-will-be-scaled-back-12722880
- https://news.sky.com/story/chancellor-reverses-almost-all-tax-cuts-of-mini-budget-and-says-energy-bills-support-scheme-will-be-scaled-back-12722880
