The New Mini-Budget: Liz Truss’s Economic Solution is Dead

19 October 2022


On Monday 17th October, newly appointed Chancellor, Jeremy Hunt, revealed further U-turns on Prime Minister, Liz Truss’ plans to salvage the turbulent British economy.

Hunt is the fourth chancellor that we’ve seen in just four months, following the swift exit of Kwasi Kwarteng. Jeremy Hunt served as Secretary of State for Foreign and Commonwealth Affairs from July 2018 to July 2019.

In his announcement to the public, Hunt scrapped a huge amount of posed tax cuts from the current Prime Minister's mini-budget, causing another wave of economic U-turns and uncertainty in Britain’s current economy.

After an extensive open debate in the House of Commons where Penny Mordaunt took to the stand to defend the absence of Liz Truss, we tuned in to watch just what the new chancellor has in store.

From the announcement, we have learnt that Hunt has made immediate reversals to help save around £32 billion a year. This comes after a rethink of how to balance public spending against tax and borrowing, and to help subside the recent knee-jerk reaction of mortgage lenders.

All plans that include scrapping tax reductions have been cancelled, bar those that have already begun. You can view the full list of cancelled tax reductions here:

 

mini budget 3

What about the plans for stamp duty and national insurance tax?

Well thankfully, wheels have already been set in motion for both of these cuts, so they will be going ahead.

This means that movers will be able to take advantage of no required stamp duty on the first £250,000 of the property’s value, and first-time buyers, will not have to pay stamp duty on the first £425,000.

The reversal of the increase of national insurance tax is staying put as a way to help nearly 28 million people save an average of £330 per year.

Though the road ahead still seems unclear for many, we can give you an extra helping hand to get your finances in check and give you invaluable advice on the next steps you may need to take. Get in touch with us today to calm any nerves around rising mortgage rates.