[Epoch Times, October 20, 2022](The Epoch Times British Reporter Station reported) On October 17 (Monday), the newly appointed British Chancellor of the Exchequer, Jeremy Hunt (Hou Junwei) announced his financial plan, almost All tax cuts from his predecessor were cancelled. The government’s energy price guarantee program to help people will also end early next April, which means the average household will face energy bills of more than £4,000 a year.
Hunter just took office last Friday (October 14). He negotiated with Prime Minister Liz Truss on the 16th to deal with a plan to restore market confidence, and then announced it immediately on the 17th, because Growth in the UK economy requires “confidence and stability”.
Hunter overturned almost everything in the emergency budget announced by his predecessor Kwasi Kwarteng at the end of September in just five and a half minutes, and said he would announce reductions to the government at the end of the month as planned. Spending plan, all government departments in the UK need to save money. The Prime Minister Truss has repeatedly said that he will not cut public spending.
Hunt has held various cabinet positions including foreign secretary and health secretary. He backed Truss’ opponent, former Prime Minister Rishi Sunak, in the recent Conservative leadership race.
The tax rate is still 20%
Hunt has scrapped plans to cut personal income tax rates from 20% to 19% from April next year, meaning that personal income between £12,571 and £50,270 would be subject to 20% tax.
If according to the emergency budget announced by the previous government, the personal tax rate and the national insurance rate are reduced. From April next year, individuals with an annual income of 30,000 pounds will pay 392 pounds less in tax a year, and those with an annual income of 50,000 pounds will pay 842 pounds less. pound.
However, the new Chancellor of the Exchequer canceled the tax cut plan and only retained the plan to reduce the National Insurance tax rate, which means that from April next year, people earning £30,000 and £50,000 a year will pay £218 or £468 less respectively. National Insurance, but the personal tax amount remains the same.
Hunt conceded that while the Conservatives had always believed that people should keep more of their income, not pay more in taxes, “borrowing to maintain this tax cut at a time when the market is asking the government to commit to the sustainability of public finances is wrong”.
He also scrapped plans to cut shareholder dividend rates, tax-free shopping for foreign tourists, and a tax freeze on alcohol products, leaving only two tax cuts in the emergency budget, namely stamp duty cuts and the cancellation of the National Insurance tax rate increase.
He said removing these tax cuts, combined with the previously announced removal of the corporate tax rate cut and the removal of tax cuts for the highest earners, could bring the UK government to around £32bn a year in tax revenue.
Sterling rebounds
The international market welcomed Hunter’s plan, with the pound trading at $1.129 against the dollar and the euro on Monday.
Interest rates on government bonds have also fallen, meaning it has become cheaper for governments to borrow. ◇
Responsible editor: Chen Bin