New UK chancellor Jeremy Hunt has reversed almost all of mini-budget tax cuts, in an embarrassing U-turn for Prime Minister Liz Truss.
“We will reverse almost all the tax measures announced in the growth plan three weeks ago that have not [already started the parliamentary process],” he said.
Hunt says this includes:
- Cuts to dividend tax rates
- The IR35 tax changes
- VAT-free shopping for tourists
- The alcohol duty changes
Hunt also says the 20% basic rate of tax will remain indefinitely.
He says these measures will raise an extra £32bn per year for the Treasury
Hunt said: “So whilst we will continue with the abolition of the health and social care levy and stamp duty changes, we will no longer be proceeding with the cuts to dividend tax rates, the reversal of off-payroll working reforms introduced in 2017 and 2021, the new VAT-free shopping scheme for non-UK visitors or the freeze on alcohol duty rates.”