In response to worsening global economic outlook and market volatility, today the Chancellor made a statement in Parliament setting out the measures he will take to respond to these ongoing challenges.
The measures previously announced by the former Chancellor set out a bold, ambitious vision for pro-growth Britain. While I firmly support the delivery of a low-tax, high growth economy, as Conservatives our Government must always prioritise our core principle of fiscal responsibility. When it comes to global economics we are not an island and are affected by global pressures. It is clear that with such uncertainty around the world, with ongoing conflict, rising inflation and interest rates, and national pressures increased by the impact of the pandemic, we must first adopt a more cautious approach and restore stability in financial markets.
This means difficult decisions are needed.
In addition to the announcement by the Prime Minister on Friday that the planned rise in Corporation Tax will now proceed, the Chancellor has today announced:
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Support for energy Bills will remain, however this will be guaranteed for 6 months until April 2023, with a review of the policy to be conducted by the Treasury. This follows concerns over the costs but also the impact of falling gas prices.
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Planned reduction in income tax will not be implemented until economic circumstances allow
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Several other measures announced on 23 September, including a freeze in alcohol duty and the re-introduction of VAT shopping will be reversed.
The increase in Stamp Duty thresholds and the removal of the planned rise in National Insurance will be retained.
Households remain better off under these proposals, with reductions in both tax and energy bills, and the removal of the additional measures will mean lower Government borrowing.
Today’s statement shows how the Conservative Government can and will prioritise sound economic management and make the tough decisions, even when it is politically difficult to do so. Our Government will do what is necessary to see us through the current challenges, while remaining committed to reducing UK debt and returning our country to a low tax, high growth economy.
