Stamp Duty - Chancellor Hunt reveals what happens next

The new Chancellor, Jeremy Hunt, says the limited cut in stamp duty in England and Northern Ireland announced in the mini-Budget two weeks ago will continue - although almost every other tax cut announced at the time will be reversed. 

In a video statement this morning Hunt says: "We will continue with the abolition of health and social care levy and the stamp duty change, off payroll working reforms, the new VAT-free shopping scheme for non-UK visitors and the freeze on alcohol duty rates."

But every other change put forward by Prime Minister Liz Truss and the former Chancellor Kwarzi Kwarteng is being reversed. 

In particular the cutting of the basic rate of income tax to 19 per cent from April 2023 - a flagship policy of Truss in the recent past - will now not happen. The statement says: "The basic rate of income tax will therefore remain at 20 per cent indefinitely. This is worth around £6 billion a year."

Hunt also says a Treasury-led review will take place into how people are helped with energy bills from April next year. The objective, he suggests, is to design a new approach to save taxpayers money while targeting support to those most in need. He adds: "Business support will also go to those most affected and will incentivise energy efficiency."

Hunt claims that no government can control the markets but it can give certainty to the markets about public finances.

He says the plans he unveils today will avoid uncertainty ahead of the full fiscal plan announcement at the end of the month - a plan which is expected to include substantial cuts to public spending.

The Chancellor says in his video statement: "As I promised at the weekend, our priority in making the difficult decisions that lie ahead will always be the most vulnerable and I remain extremely confident about the UK's long-term economic prospects as we deliver our mission to go for growth."