Jeremy Hunt scales back energy bills support in mini-budget announcement

Jeremy Hunt has announced the energy price guarantee helping millions of people throughout the winter is to be scaled back.

In his first public address as chancellor, Hunt said the energy price guarantee was ‘the biggest single expense in the growth plan’ before revealing it will no longer stay in place for two years, and will instead be reviewed by the Treasury in April 2023.

He said: “This is a landmark policy supporting millions of people through a difficult winter. And today I want to confirm the support we are providing between now and April next year will not change. 

“But beyond that, the prime minister and I have agreed it would not be responsible to continue exposing public finances to unlimited volatility in international gas prices.

” So I’m announcing today a Treasury led review into how we support energy bills beyond April next year.”

In his mini-budget announcement, Hunt also said there will be ‘indefinite’ pause to the planned 1p cut in the basic rate of income tax. 

He says it is not right to borrow to fund this tax cut, concluding that the rate will remain indefinitely at 20p until economic circumstances allow it to be cut further. 

Hunt added: “Taken together with a decision not to cut to corporation tax and restoring the top rate of income tax, the measures I have announced today will raise every year around £32bn.”

Number 10 / Flickr

The chancellor also announced he plans to reverse ‘almost all’ of the tax measures announced in the government’s growth plan three weeks ago in a bid to provide ‘confidence and stability’.

The only measures to remain will be the cut to National Insurance and cuts to stamp duty.

He said: “As I promised at the weekend, our priority in making the difficult decisions that lie ahead will always be the most vulnerable and I remain extremely confident about the UK’s long-term economic prospects as we deliver our mission to go for growth.”