Jeremy Hunt faces a Herculean task of shoring up the economy in his role as the Chancellor.
With forecasts predicting the economy will shrink by 1.4% next year the chancellor has acknowledged we’re in recession, and things will get worse before they improve.
Here are the 10 measures Hunt announced today:
1. Reduces the threshold at which the 45p rate becomes payable from £150,000 to £125,140.
2. Maintains freeze on the income tax personal allowance, higher rate threshold, main national insurance thresholds and the inheritance tax thresholds for a further two years – to April 2028.
3. Dividend allowance will be cut from £2,000 to £1,000 next year and then to £500 from April 2024.
4. NHS budget will be increased in each of the next two years by £3.3bn.
5. Government and Bank of England to “work in lock-step” in battle against inflation. No change to Bank’s remit.
6. Energy firms are meanwhile hit with an expanded windfall tax of 35%, up from the 25% already levied.
7. Electric vehicles will no longer be exempt from vehicle excise duty from April 2025.
8. Support for energy bills is expected to remain in place – but become less generous from April 2023.
9. Increase in the National Living Wage from the current level of £9.50 an hour for over-23s.
10. Stamp duty cuts announced in the mini-budget will remain in place but only until 31st March 2025.