Specialist Tax News

U-turns to steady the financial markets

In his Fiscal Statement delivered on 23 September 2022, the previous Chancellor, Kwasi Kwarteng, introduced a Growth Plan including the tax cuts promised by Liz Truss in her Conservative Party leader campaign.

However, the tax cuts were broader than expected and were being funded by increased borrowing. Furthermore, the plan was not accompanied by a report from the Office of Budget Responsibility (OBR), who normally scrutinise the Governments fiscal plans.

The combined effect of this spooked the financial markets resulting in U-turns, a change in Chancellor, and then, on 17 October 2022, a reversal of nearly all of the earlier fiscal statement measures.

Days later, the prime minister resigned, and we have since seen Rishi Sunak become leader of the Conservative Party.

To say this has been confusing is an understatement! This newsletter summarises where we are and where we are going.

In particular, we are now expecting the new Chancellor, Jeremy Hunt, to deliver an Autumn Statement and OBR report on 17 November 2022 (instead of 31 October 2022).