New finance chief in the United Kingdom, Jeremy Hunt, has overturned much of the previous government’s growth agenda while addressing a looming fiscal squeeze. The cabinet’s early move was to scale back many of the tax cuts and energy-support measures that had been promised in prior months, with the aim of restoring market confidence and reducing the national debt. Hunt signaled that the forthcoming budget would detail a plan intended to steady the economy by late October.
In a televised address to the nation, Hunt announced the removal of the planned reduction in the basic rate of income tax from 20 percent to 19 percent and cancelled a 13 billion pound reduction in Social Security costs. He also confirmed an increase in the corporate tax rate from 19 percent to 25 percent, except for small businesses, a move that followed the previous prime minister’s departure. The decision also scrapped a VAT exemption for purchases by international visitors and avoided freezing duties on alcohol. Earlier in October, the previous government had paused plans to reduce the top rate of income tax from 45 percent to 40 percent, all within a climate of high inflation and rising interest rates.
stability
Hunt stated that most of the growth plan’s financial measures had been rolled back and emphasized that the central objective is stability. He noted that governments cannot eliminate market volatility entirely, but they can act to limit it. Stability, he argued, directly affects everyday costs, including the price of goods in stores, mortgage payments, and the value of pensions.
As part of the consolidation effort, the new approach trimmed energy support for households, a program that had been estimated to cost the government hundreds of billions over its lifetime. By contrast, a package designed to assist businesses had already been approved, and household support was scaled back with a shorter time horizon. Hunt warned that additional difficult decisions would follow on taxes and public spending, and that future budget changes could amount to billions annually.
Later that day, Hunt returned to Parliament to explain the new stance, indicating openness to future adjustments and the possibility of a tax on excess profits by energy producers if conditions warranted it. He faced questions from opposition members, with critics arguing that the measures have intensified risk for ordinary families. A senior opposition figure criticized the government for creating a crisis that would be shouldered by the public, prompting discussions about leadership and accountability within the ruling ranks.
A representative from the opposition pressed Hunt on whether any cap on bankers’ bonuses would be lifted, a matter previously raised by the prior administration, but no definitive response was given at that moment.
resignation letters
The push to unwind the prime minister’s economic plan has heightened pressure on leadership figures within the ruling party. Several potential successors are being discussed in the market, with bookmakers highlighting former finance minister Rishi Sunak as a likely candidate, followed by defenders of national security and government ministers. Other names circulating include a high-profile member of the defense team, a current minister, and a former prime minister who has reemerged in the conversation. The dynamics suggest a tense period ahead for the leadership’s long-term prospects.