After writing our blog post following the September 2022 'Mini Budget', we weren't expecting to write another in October amending most of the points raised…
On Monday 17th October, the (new) Chancellor, Jeremy Hunt, made a statement “bringing forward measures from the Medium-Term Fiscal Plan”. He announced what amounts to a near-total unwinding of Kwasi Kwarteng’s ‘fiscal event’ of 23rd September.
There is a lot being said in the news at present, so for clarity, I have summarised the areas which may affect your financial affairs below. (There were some additional measures such as no freeze on alcohol duty which I’ve not covered in this post for simplicity.)
The key measures revoked were:
The Energy Price Guarantee (EPG) is now to be reviewed:
This was due to cap average domestic bills at £2,500 a year for two years from the start of October, it will now be scaled back to last only until April 2023. In the meantime, the Treasury will design “a new approach that will cost the taxpayer significantly less than planned whilst ensuring enough support for those in need”. Any support for businesses from April 2023 “will be targeted to those most affected”.
The government did, however, keep some measures in place as follows:
Since the initial ‘mini-statement’ markets have been volatile as expected and there is still a lot in the press surrounding the Prime Minister and what might happen next.
Further changes to fiscal policy to put the public finances on a sustainable footing will be announced on 31st October 2022 alongside the publication of the Office for Budget Responsibility’s Economic and Fiscal Outlook. We will continue to update you with any announcements made.
We pride ourselves on having a robust investment approach and always stress test your financial plan. If you’re feeling nervous, would like some additional information, or if you're unsure as to how these changes might affect you, please do not hesitate to contact us.
This content is for information purposes and should not be treated as financial advice. We would always recommend speaking to a professional before making decisions regarding your wealth.
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