The new Chancellor, Jeremy Hunt, has reversed almost all of the tax cuts set out in Kwasi Kwarteng's disastrous mini-Budget three weeks ago, raising an extra £32 billion per year.
In a pre-recorded speech designed to reassure the markets ahead of a statement to MPs at 3.30pm today, Hunt said 'we will reverse almost all the tax measures announced in the growth plan three weeks ago that have not [already started the parliamentary process].'
The only two elements that survived were the cut to National Insurance and the cut to stamp duty in England and Northern Ireland.
Following the scrapping of the corporation tax cut and the sacking of Kwasi Kwarteng on Friday, which still failed to reassure the markets, Hunt announced the effective death of Trussonomics only weeks after her tax-cutting agenda was put in place. It leaves serious question marks about her future, with strong speculation that Conservative MPs are seeking to oust her.
Hunt, who has only been in the role for 72 hours and spent the weekend doing a round of media interviews in an attempt to reassure the markets, Tory MPs and the public, said the cuts to dividend tax rates, the IR35 tax changes, the VAT-free shopping for tourists, and the alcohol duty changes will all be scrapped.
Meanwhile, he said the 20% basic rate of tax will remain indefinitely. He also confirmed that the energy price guarantee, as originally announced, will only last until April - with the new Chancellor saying Truss agreed that it would be wrong make such a long-term spending commitment when the future of energy prices remains so unclear.
Hunt says there will be a review in April when a more targeted system will then be put in place.