December 6, 2022

Live Fall Statement Updates: What to look for in Jeremy Hunt's financial plan

Live Fall Statement Updates: What to look for in Jeremy Hunt’s financial plan

British Chancellor Jeremy Hunt’s autumn statement will be the government’s first financial announcement under Rishi Sunak.

Hunt, chancellor since 14 October, rescinded all measures set out by his predecessor Kwasi Kwarting, who was sacked after 38 days in office.

The past 12 months have seen several budget announcements under three prime ministers and four advisers:

Fall 2021

Prime Minister Boris Johnson. Adviser: Rishi Sunak

Sunak presented his third budget as a gateway towards the post-coronavirus economy. He pledged to pump more money into public services to help with the post-pandemic recovery. His statement outlined plans to raise taxes to the highest levels in more than 70 years, including a corporate tax hike.

March 2022

Prime Minister Boris Johnson. Adviser: Rishi Sunak

Rishi Sunak unveiled the tax cut measures in his spring manifesto, his last as a minister, delivered against the backdrop of soaring inflation in the month following Russia’s invasion of Ukraine.

Sunak maintained a planned 1.25 percentage point rise in National Insurance contributions, but increased the minimum by £3,000. He aimed to cut the base rate of income tax by one percentage point to 19 per cent in 2024 and proposed cutting fuel surcharges by 5p a litre.

Sept. 23

Prime Minister: Liz Truss. Consultant: Kwasi Quarting

Kwasi Kwarteng unveiled the biggest tax cuts in 50 years in his financial statement, hailing his £45bn debt-financed “mini” budget as the start of a “new era” of economic growth.

Kwarteng proposed ending the extra income tax rate of 45p for top earners, lowering the base rate from 20p to the pound to 19p, lowering stamp duty, national insurance and dividend taxes, and introducing a tax on home purchases.

He planned to scrap a proposed corporate tax increase and keep it at 19 percent while maintaining an 8 percent charge on bank profits, which was to be cut next year.

But the markets witnessed a sharp decline after the announcement, and the British pound fell to a record low against the dollar. Borrowing costs have risen and pension funds have come under pressure. Bank of England intervention.

The financial announcement led to his downfall – he was soon removed as Chancellor – and this was followed by the resignation of Liz Truss as Prime Minister. Her term lasted 45 days.

Sept. 28

Prime Minister: Liz Truss. Consultant: Kwasi Quarting

The Bank of England launched an emergency program to buy government bonds worth 65 billion pounds to stop the debt crisis and protect pension funds threatened with bankruptcy, after a rise in government bond yields.

The central bank warned of a “material risk to UK financial stability” from turmoil in the gold bond market.

Oct. 17

Prime Minister: Liz Truss. Counselor: Jeremy Hunt

Three days after becoming chancellor, Hunt tore up two-thirds of the mini-budget measures for Karting and warned of “very tough” decisions. Truss had already eliminated tax cuts for large corporations and the wealthy.

Hunt reversed a £6 billion cut to the base rate of income tax, along with changes to dividend taxes, a value-added tax exemption for foreign shoppers, and a freeze on alcohol charges.

The chancellor has slashed a gear scheme to cap British households’ annual energy bills at an average of £2,500 for two years, saying it will end after six months.