17th October 2022Mini-budget measures reversed – summary of changes

The Chancellor has reversed almost all measures announced in September’s “mini budget”.

Summary of changes:

• The basic rate of income tax will remain at 20p indefinitely – instead of being reduced to 19p
• The cap on energy bills is guaranteed until April next year, but will then be reviewed
• Plans to repeal reforms to off-payroll working rules – also known as IR35 rule changes will be abolished
• Dividend tax cut will be reversed, as will VAT-free shopping and the planned alcohol duty freeze
• The planned cuts to stamp duty and National Insurance will go ahead

Commenting on the changes announced today, Jamie Morrison, head of tax said:

“Businesses hate uncertainty, and the markets even more so. Businesses confidence is low and the constant U-turns make it almost impossible for businesses to plan. Government must restore credibility and confidence by committing to changes announced today.

“As we move forwards, The Chancellor and PM must also level with the electorate about the challenges ahead. Government debt is close to £2.4tn – this figure is 11 zeroes and almost as much as the value of all the goods and services produced in the UK in a year. To truly tackle this, tax increases look inevitable as the Government seeks to rebalance the books”

It can be difficult to calculate what the reality of these announcements means for individual circumstances and often a lot of the detail is missed during the Chancellor’s speech. If you would like to have a conversation with one of our partners about how today’s changes will impact you and your business, or individual circumstances please do get in touch directly.