RIP Trussonomics - The Chancellor's Emergency Fiscal Statement

Trussonomics is over. I've had cheese in my fridge for longer than Trussonomics has lasted. Here are the key points from the statement issued by the newly-installed Chancellor, Jeremy Hunt.

The main aim of the statement is to help restore the confidence of financial markets and particularly investors in UK government debt. There is a multi-billion black hole in the government's finances that needs to be addressed now. Market turmoil creates economic fear. And uncertainty is a drag on growth, jobs and living standards hitting those least able to protect themselves.

So - the key points:

1. Corporation tax will rise as planned to 25% - the decision to hold at 19% is abandoned.
2. The 1% cut in income tax is reversed - the basic rate will remain at 20% until economic circumstances allow it to be reduced
3. The new VAT free shopping scheme for UK visitors is abandoned
4. Cut in national insurance is confirmed
5. Cut in (housing) stamp duty remains
6. No freeze to alcohol duty
   
7. Energy Price Guarantee - the support announced between October and April 2023 will not change. But beyond that, support for energy bills will be reviewed to lower the burden on taxpayers. (Essentially an end to universal support on energy bills). The Truss two-year guarantee to households on energy bills has been dropped.

Hunt claims that these fiscal measures will raise £32 billion.

The entire mini-budget from last month has been binned - save for abolishing the cap on bankers' bonuses. Make of that what you will.

More good news for the government - Goldman Sachs predicts that the recession in 2023 is going to be worse than expected but on the plus side, inflation and interest rates are going to be lower than had been previously forecast.

Here's what the U-turn on energy prices could mean for the average household - reaching the equivalent of £4,347 per year from April to June next year before declining over the rest of the year.

However, even though Cornwall Insight expects the price of energy to fall to £3,722 from October next year, that is nearly £2,500 more than they were year earlier. And that's going to push an awful lot of households into fuel poverty.