UK’s Hunt says he will raise $36 bln more in tax and limit power subsidies

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British finance minister Jeremy Hunt, seeking to quell a bond market rout, listed on Monday tax changes that he said would raise an extra $36.16 billion (32 billion pounds) a year and scaled back the government’s energy price cap scheme.

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Among the changes was the indefinite suspension of a plan to cut the basic rate of income tax which had been due to fall in April next year under the original plans of Prime Minister Liz Truss that triggered the upheaval in financial markets.

Hunt also said the government’s huge energy price cap would only run until April, after which the government would seek ways to help the most vulnerable households.

Other tax changes originally planned by Truss which will not go ahead included a cut in dividends tax, the creation of a new VAT-free shopping scheme and a freeze in alcohol duty rates plus new rules for self-employed people.

“Taken together with the decision not to cut corporation tax and restoring the top rate of income tax the measures I’ve announced today will raise every year around 32 billion pounds,” Hunt said.

A cut to the rate of National Insurance and a cut to the stamp duty tax on property purchases will go ahead as planned, Hunt said.

A government spokesperson said that the government went “too far, too fast” in its drive for growth.

“We recognize that economic stability is important, particularly when we are seeing some of the global headwinds we are right now and that is why we have made these changes,” the spokesperson said.

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