[The Epoch Times, 20 ottobre 2022](The Epoch TimesUK.On October 17 (this Monday), the newly appointed British Chancellor of the Exchequer Jeremy Hunt (Hou Junwei) announced his financial plan, canceling almost all of his predecessors.tax cutFloor. The government’s energy price guarantee program to help people will also end early next April, meaning the average household will face energy bills of over £ 4,000 per year.
Hunter took office last Friday (October 14), negotiated with Prime Minister Liz Truss on the 16 to tackle a plan to restore market confidence, and then immediately announce it on the 17, becauseUK.Economic growth requires “trust and stability”.
Hunter overturned nearly the entire emergency budget announced by his predecessor Kwasi Kwarteng at the end of September in just five and a half minutes, and said he would announce cuts to the government later this month as planned. UK departments need to save money. Prime Minister Truss has repeatedly stated that he will not cut public spending.
Hunt has held various cabinet posts including foreign secretary and health secretary. He supported Truss’s opponent, former Prime Minister Rishi Sunak, in the recent Conservative leadership race.
The tax rate is still 20%
Hunt canceled plans to reduce personal income tax rates from 20% to 19% from April next year, meaning personal income of between £ 12,571 and £ 50,270 would be subject to a 20%.
If, according to the emergency budget announced by the previous government, the personal and social security tax rates are reduced, from April next year, people with an annual income of £ 30,000 will pay £ 392 less in taxes to the year and those with an annual income of £ 50,000 will pay £ 842 less.
But the new chancellor has abolished the taxtax cutThe plan only maintains the plan to reduce the national insurance tax rate, which means that from April next year, people with annual income of £ 30,000 and £ 50,000 will pay less than £ 218 or £ 468 of insurance respectively. national, but the amount of personal tax remains unchanged.
Hunt admitted that while conservatives had always believed that people should keep more of their income, not pay more in taxes, “borrow to maintain this tax cut at a time when the market demands the government. to commit to the sustainability of public finances is wrong “.
It also canceled plans to cut shareholder dividend rates, tax-free purchases for foreign tourists, and the freeze on alcohol taxes, leaving only two tax cuts in the emergency budget, namely stamp duty cuts. and the cancellation of the national insurance rate increase.
He said the removal of these tax cuts, combined with the previously announced removal of the corporate tax rate cut and the removal of tax cuts for the highest incomes, could bring the UK government to around 32. billions of pounds a year in tax revenue.
The pound rebounds
The international market welcomed Hunter’s plan, with the pound trading at $ 1.129 against the dollar and euro on Monday.
Interest rates on government bonds have also fallen, which means it has become cheaper for governments to borrow. ◇
Responsible editor: Chen Bin
