Trussonomics trashed as Hunt sets out new economic plan
New Chancellor Jeremy Hunt has effectively dismantled Liz Truss’s economic plan in an emergency statement this morning (October 17).
In an on-camera statement, Hunt swept away almost all of the unfunded tax cuts announced in the mini-Budget of September 21, and brought forward a range of measures from the economic plan he is planning to reveal in full of October 31.
In perhaps the biggest surprise of the Chancellor’s statement, he revealed that the Energy Price Guarantee – a cornerstone of Liz Truss’s mini-Budget – will come to an end in April, and will not last two years as previously promised. It will then be targeted and capped. This is expected to save the Government around £150m and comes amid falling gas prices.
The Chancellor scrapped – indefinitely – the plan to cut the basic rate of income tax from 20p to 19p. He said this wouldn’t be looked at again until “economic conditions are right”.
He added: “The most important thing we need is stability Instability affects prices of things and the price of mortgages.
“There will be more difficult decisions on tax and spending. All Government departments will have redouble their efforts in finding areas of spending be cut.
“I am confident about the long term. The UK will always pay it way – and we will take whatever tough decisions we need to, to make that happens.”
Only five days ago, at Prime Minister’s Questions, Truss said: “We have taken decisive action to make sure that people are not facing energy bills of £6,000 for two years. We remember that the opposition are only talking about six months. We have also taken decisive action to make sure that we are not facing the highest taxes for 70 years in the face of a global economic slowdown.”
