The Commons react to Jeremy Hunt’s fiscal plan

Following his emergency fiscal statement this morning, the new chancellor announced his plans in the House of Commons.

He is reversing “almost all” tax measures announced in the growth plan three weeks ago.  Hunt said, “We will no longer be proceeding with the cuts to dividend tax rates, the reversal of off-payroll working reforms, the new VAT-free shopping scheme for non-UK visitors or the freeze on alcohol duty rates”.

In addition to the reversal of plans for a cut in corporation tax, the new chancellor has now scrapped plans to cut the basic rate of income tax from 20p in the pound to 19p from April next year. The rate will remain indefinitely at 20p until economic circumstances allow this to be reconsidered.

Shadow Chancellor Rachel Reeves accused Hunt of “austerity” and said that the only thing he has kept from Kwarteng’s mini-budget is bankers bonuses.

Alison Thewliss of the SNP and Ed Davey, leader of the Lib Dems criticised Hunts plan, noting how the plans to reduce aid for energy bills was announced without a consideration of introducing a windfall tax on energy companies.

There was however, far less anger in the Commons compared with the announcement of mini budget three weeks ago, with many Conservative MP’s saying that they are grateful for Hunt’s so far successful endeavours to calm the markets.