This week has started with yet another U-turn from our government with the new chancellor Jeremy Hunt announcing a repeal on almost all tax cuts in the previous mini budget led by former chancellor Kwasi Kwarteng.
On Monday during a press conference the new chancellor announced that he is reversing almost all of the tax cuts outlined in the mini budget, he also revealed that support on energy bills will be reviewed and scaled back too.
So, apart from being able to keep up with all the U turns, what does the emergency statement mean for you?
Here’s a brief outline of the points raised by the chancellor:
- 1p cuts to income tax planned for April 2023 will be postponed indefinitely, as we wait for the UK economy to improve
- Energy price cap will only be universal until April 2023, then will be reassessed
- IR35 rules will continue to stand as is today rather than the repeal announced 3 weeks ago, for the self employed
- No freeze on alcohol duty
- No VAT free shopping scheme for visitors to the UK
These changes are estimated to generate £32billion and be more beneficial to those in need, rather than focus universally to all.
The main point that was stressed by the new chancellor was to create stability in the UK and generate a more focussed approach for those who actually need the support. There was a clear message that more difficult decisions are to come, and a shift to a more sustainable approach to both spending and energy use.
For me, the focus on stability stood out (and let’s see if they can actually achieve it!), we have had little politic stability for some time which is unnerving to say the least. A stable leadership be that in government, business or teams encourages trust, and has a positive influence on those around you. When you have stability in leadership you can build and grow consistently. It’s funny how stability is something we don’t often think about in leadership, that is until it’s missing!
What are your thoughts on the new changes?