UK Axes Economic 'Growth Plan' To Restore Market Confidence

• New British finance minister Jeremy Hunt on Monday announced almost a complete U-turn on Prime Minister Liz Truss’ plan to boost economic growth through unfunded tax cuts, which had sent international investors bolting for the exit.
• Here are some of the policy reversals announced by Hunt, which he said would raise 32 billion pounds ($36.19 billion) for the government finances:
• INCOME TAX: Hunt announced this will stay at 20% indefinitely from the previous 19% announced. The finance ministry said this will raise around 6 billion pounds a year.
• ENERGY BILLS SUPPORT: Hunt said the government's support for household and business energy bills will only run to April next year, with a review to consider what support will be needed after that point and how it can be better targeted.
• OFF-PAYROLL WORKING REFORMS: the government is looking to cut the cost of its growth plan by around 2 billion pounds per year.
• CORPORATION TAX: Britain will now press ahead with its original plan to raise its 19% corporation tax rate - the lowest among the G7 club of rich nations - to 25% in 2023.
• DIVIDENDS TAX: Hunt reversed the plan to cut the rate of tax on dividends by 1.25 percentage points from next year, which had been valued at around 1 billion pounds a year.

(Source: Reuters)