According to Reuters, in an effort to calm the bond market, British Finance Minister Jeremy Hunt detailed on Monday tax plans that he said would generate an additional 32 billion pounds ($36.16 billion) a year and scaled back the government’s energy price cap scheme.
A move that caused turmoil in the financial markets was the indefinite postponement of a plan to reduce the basic income tax rate, which was set to do so in April of next year under the initial goals of Prime Minister Liz Truss.
Hunt added that the government’s substantial energy price cap would only be in effect until April; following that, it will look for measures to assist the most vulnerable households.
Other tax measures that Truss had initially intended but did not implement included a reduction in the dividend tax, the creation of a new VAT-free shopping scheme, a freeze on alcohol duty rates, and new regulations for self-employed individuals.
Jeremy Hunt stated that “taken together with the decision not to cut corporation tax and restoring the top income tax rate, the measures I’ve announced today will raise around 32 billion pounds every year.” He added that a cut to the rate of National Insurance and a cut to the stamp duty tax on property purchases will go ahead as planned.