Today, October 17th, Chancellor Jeremy Hunt has reversed many of the changes brought about by the September Mini-Budget. Markets reacted poorly to the September announcement, leading to spiraling interest rates.
The National Insurance cuts, and the scrapping of the Health & Social Care Levy will remain. The 1.25% rise in National Insurance, introduced in April 2022 by Rishi Sunak, was designed to replicate the effect of the Health & Social Care Levy, which would have been introduced as a separate tax in April 2023. Both the increase in National Insurance and the new Levy were scrapped in the September Mini-Budget – this decision still stands (the National Insurance rise will be reversed from 6th November).
The planned reduction in Income Tax from 20% to 19% will no longer take place. This follows the reversal of the 45% Additional Rate policy earlier this month, which was intended to be scrapped, but will now remain.
Another mini-budget will follow on 31st October.
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