Liz Truss news LIVE – PM accepts responsibility for going ‘too far, too fast’ as Jeremy Hunt makes mini-budget U-turn

Hunt’s announcement at a glance

In a bid to reassure nervous markets, the Chancellor announced yesterday morning that a planned 1p cut to the basic tax rate will be delayed “indefinitely”.

And Mr Hunt also confirmed that the Energy Price Guarantee – which sees the typical bill capped at £2,500 – will only last until April, instead of October next year.

The Treasury will review how hard-up Brits should be supported from that point on.

Yesterday's u-turn a ‘huge blow to brewers and pubs’

Emma McClarkin, Chief Executive of the British Beer and Pub Association hit out at Jeremy Hunt’s statement yesterday, saying it will be a massive blow for pubs.

“The Chancellor’s decision today to reverse the Alcohol Duty freeze is a huge blow to brewers and pubs,” she said.

“The freeze would have delivered a £300million saving to our industry at a time when we desperately need any relief we can get, to help to keep a lid on spiralling costs and keep the price of pint affordable for pub goers this winter.

“The cost of doing business is completely out of control for pubs and brewers and the failure to act today to reduce pressures on businesses will hit them extremely hard.

”Our sector needs stability to plan and be able to keep serving communities at a reasonable price, but instead has been subject to ongoing uncertainty for too long.

“Waiting until a February budget to ease these pressures will be too late, we need the Chancellor to act before Winter really starts to bite for our brewers, pubs and the customers and we lose them forever in communities across the UK.”

Stamp duty cut remains

Thousands of homebuyers are still set to save up to £6,250 as a cut to stamp duty will stay in place.

Stamp duty land tax (SDLT) is a lump sum payment you have to make when purchasing property over a certain threshold.

Under the previous system, no stamp duty was paid on the first £125,000 of any property purchase.

The government doubled that in last month’s mini-Budget – to £250,000 – for all home purchases.

The threshold at which the duty was paid for first-time buyers was £300,000. But this increased, to £425,000.

Recap: Yesterday's economic announcements

• The energy price guarantee of average £2,500 a year bills will be only capped until April – with support for the richest households to end after that
• The 1p off income tax planned for next April has been junked
• The planned reforms to offroll pay working will go ahead as planned – and won’t be ditched as Kwasi Kwarteng wanted
• Cutting VAT for foreign tourists visiting the UK will be ditched
• The cuts to National Insurance and slashing of stamp duty will remain
• That comes on top of the u-turn not to ditch the top 45p rate of tax, and to ditch plans to cut corporation tax – which have already been announced

Truss should ‘absolutely not’ resign, says Rees-Mogg

Leaving the Commons yesterday evening, Jacob Rees-Mogg defiantly defended Liz Truss, after some Tory MPs called for her resignation.

“[She is] a very good prime minister,” he told PA Media, adding that she should “absolutely not” resign.

Yesterday, Jeremy Hunt slashed almost all of Truss’s mini budget, reversing a slew of tax cuts.

How much will you lose after yesterday's income tax change?

Yesterday, the Chancellor announced a reversal of the proposed 1p cut to income tax.

Brits will now stand to lose up to £377 in tax cuts per year.

How much will you lose?

Hunt’s announcement at a glance

In a bid to reassure nervous markets, the Chancellor announced yesterday morning that a planned 1p cut to the basic tax rate will be delayed “indefinitely”.

And Mr Hunt also confirmed that the Energy Price Guarantee – which sees the typical bill capped at £2,500 – will only last until April, instead of October next year.

The Treasury will review how hard-up Brits should be supported from that point on.

PM admits ‘mistakes have been made’

The first reports from Liz Truss’s meeting with the One Nation Group of Tory MPs have been revealed.

“The prime minister started by saying that mistakes have been made, she acknowledged them, she is bringing the party together,” Party chairman Jake Berry said, according to PA Media.

“Colleagues who were there [were] very heavily focused on unity. Matt Hancock made a really good intervention, saying that now is the time for unity, we’ve got to get behind the PM.”

Could there be a general election?

Embattled PM Liz Truss is facing challenges to her leadership from all corners, just six weeks into her time in Downing Street.

But could we see a general election called soon?

A general election is, at present, very unlikely.

This is because the Conservative party have such a large majority in Parliament, so it would not make much sense for them to call one.

Today's u-turn a 'huge blow to brewers and pubs'

Emma McClarkin, Chief Executive of the British Beer and Pub Association hit out at Jeremy Hunt's statement today, saying it will mean a massive blow for pubs.

“The Chancellor’s decision today to reverse the Alcohol Duty freeze is a huge blow to brewers and pubs," she said.

"The freeze would have delivered a £300million saving to our industry at a time when we desperately need any relief we can get, to help to keep a lid on spiralling costs and keep the price of pint affordable for pub goers this winter.

"The cost of doing business is completely out of control for pubs and brewers and the failure to act today to reduce pressures on businesses will hit them extremely hard

."Our sector needs stability to plan and be able to keep serving communities at a reasonable price, but instead has been subject to ongoing uncertainty for too long.

"Waiting until a February budget to ease these pressures will be too late, we need the Chancellor to act before Winter really starts to bite for our brewers, pubs and the customers and we lose them forever in communities across the UK."

Recap: Today's economic announcements

• The energy price guarantee of average £2,500 a year bills will be only capped until April – with support for the richest households to end after that
• The 1p off income tax planned for next April has been junked
• The planned reforms to offroll pay working will go ahead as planned – and won’t be ditched as Kwasi Kwarteng wanted
• Cutting VAT for foreign tourists visiting the UK will be ditched
• The cuts to National Insurance and slashing of stamp duty will remain
• That comes on top of the u-turn not to ditch the top 45p rate of tax, and to ditch plans to cut corporation tax – which have already been announced

Could there be a general election?

Embattled PM Liz Truss is facing challenges to her leadership from all corners, just six weeks into her time in Downing Street.

But could we see a general election called soon?

A general election is, at present, very unlikely.

This is because the Conservative party have such a large majority in Parliament, so it would not make much sense for them to call one.

Jeremy Hunt hails Liz Truss in Commons appearance

Appearing in the Commons this afternoon, Jeremy Hunt has hailed the PM and her willingness to face challenges.

He said: “the most challenging form of leadership is to accept that the decision you have made needs to change”.

What do you think of today's changes?

The new Chancellor made a mountain of changes to Britain's economic policy today, slashing almost all of the tax cuts announced in the mini budget.

But what do you think of Jeremy Hunt's changes?

What was announced today?

• The energy price guarantee of average £2,500 a year bills will be only capped until April – with support for the richest households to end after that
• The 1p off income tax planned for next April has been junked
• The planned reforms to offroll pay working will go ahead as planned – and won’t be ditched as Kwasi Kwarteng wanted
• Cutting VAT for foreign tourists visiting the UK will be ditched
• The cuts to National Insurance and slashing of stamp duty will remain
• That comes on top of the u-turn not to ditch the top 45p rate of tax, and to ditch plans to cut corporation tax – which have already been announced

Martin Lewis gives his verdict on today’s shake-up

Martin Lewis, the UK’s resident MoneySavingExpert, took to Twitter this morning to share his thoughts on Jeremy Hunt’s changes.

Writing on Twitter, Mr Lewis said: “Hunt says energy price guarantee to remain until April.

“After that treasury review on how to support energy prices.

“Plus all mini-Budget tax measures (barring stamp duty and NI cut) now not happening, so no cut in basic rate.

“Trussenomics totally hunted down and gone.”

He added: “While energy intervention was desperately needed – a universal energy price guarantee was always expensive and poorly targeted.

“The post-April support will still need reach a decent way up the net and support middle earners, energy rates are still huge.”

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