The Growth Plan – an Update
Today, the government’s political turmoil ratcheted up as the fallout from the Growth Plan claimed its first scalp.
A new Chancellor
Jeremy Hunt replaced Kwasi Kwarteng as Chancellor, making him the fourth Chancellor in as many months.
Chris Philp, the Chief Secretary to the Treasury, was also sacked. He was replaced by Ed Argar, formerly the Paymaster General and Minister to the Cabinet Office.
The Prime Minister announced that the planned reversal of the increase to corporation tax would not go ahead.
The rise from April 2023 to 25%, with reduced rates for companies with profits below £250,000, was reinstated.
31 October remains the date when the Chancellor will announce the Autumn Statement.
Timetable of reversals
Today’s announcements were the culmination of a series of statements and retractions over the last few weeks:
- The planned abolition of the 45% tax rate announced in September’s ‘mini-Budget’ survived just ten days before being reversed on 3 October.
- Seven days later, on 10 October, the Treasury announced that the Chancellor would bring forward the announcement of his Medium-Term Fiscal Plan from 23 November to 31 October.
This last date for the calendar is one of the surviving elements of Kwasi Kwarteng’s planning which Jeremy Hunt will now take forward.
If you have any questions about how the changes to the Growth Plan affect you, please don’t hesitate to contact us.