The UK Government brought forward today, 17 October, several measures from their 31 October Medium-Term Fiscal Plan designed to ensure the UK’s economic stability. Hunt stated no government can control the markets, but it can give certainty about public finances.
Mortgage products
Propertymark welcomes the commitment to retain the new Stamp Duty thresholds. Lenders have withdrawn numerous products in the three weeks since the mini-budget therefore today’s wider announcements are expected to translate into a settling down of market volatility to enable buyers to proceed with more confidence that lending costs can be offset by Stamp Duty savings.
The following tax policies will no longer be taken forward:
- Cutting the basic rate of income tax to 19% from April 2023. The basic rate will therefore remain at 20% indefinitely
- The 1.25% decrease in dividends tax planned for April 2023 is cancelled
- A new VAT-free shopping scheme for non-UK visitors to Great Britain
- Freezing alcohol duty rates from 1 February 2023 for a year. The next steps of the Alcohol Duty Review announced in Growth Plan 2022 will continue as planned
Energy bills support review
The Energy Price Guarantee and the Energy Bill Relief Scheme due to be in place from 1 October 2022 for two years have been limited to April 2023.
A Treasury-led review will be launched on how the UK Government supports households and businesses with energy bills beyond this point. The objective of the review is to design a new approach that will cost the taxpayer significantly less than planned whilst ensuring enough support for those in need.
The Chancellor stated that any support for businesses will be targeted to those most affected and that the new approach will better incentivise energy efficiency.
