What was in the mini-budget and what has been scrapped?

Published

3 years ago

October 17, 2022

admin

Just over three weeks ago, then-chancellor Kwasi Kwarteng unveiled his tax-cutting mini-budget to MPs which caused economic turmoil in the UK.

Following a dramatic U-turn on a promise to abolish the 45% higher rate of income tax after backlash from the government’s own Conservative MPs earlier this month, Mr Kwarteng has now been sacked – and many of the other pledges in the mini-budget have been torn up.

On Friday, the government scrapped its decision to axe the rise in corporation tax to 25% next year.

Addressing the nation in a statement on Monday morning, newly appointed chancellor Jeremy Hunt confirmed that most of the other mini-budget proposals have also now been thrown in the bin as Prime Minister Liz Truss seeks to hold on to her premiership.

Hunt goes further than expected – as Tory MPs say it’s ‘when not if’ Truss goes – follow latest on politics

Here is a breakdown of what was in the government’s mini-budget at the end of September and what has changed:

Income tax:

What was pledged?

• The government pledged that the 45% higher rate of income tax would be abolished.

• There was a promise to reduce the basic rate of income tax to 19p in the pound by April 2023, meaning 31 million people would be better off by an average of £170 a year.

What has changed?

• The government rowed back on its decision to scrap the highest rate of income tax earlier this month.

• Mr Hunt said the basic rate of income tax would now “indefinitely” stay at 20p until economic conditions allowed a reduction.

“It is a deeply held Conservative value – a value that I share – that people should keep more of the money that they earn,” the new chancellor said.

“But at a time when markets are rightly demanding commitments to sustainable public finances, it is not right to borrow to fund this tax cut.”

Corporation tax

What was pledged?

• The government said it would cancel a UK-wide rise in corporation tax which was due to increase from 19% to 25% in April.

What has changed?

• Ms Truss confirmed in a brief press conference on Friday that she was dropping this flagship policy of her leadership campaign and that corporation tax will go up from 19% to 25% in April after all.

Energy package

What was pledged?

• The government said household bills would be cut by an expected £1,000 this year with aid from the energy price guarantee and £400 grant. The energy price guarantee had been due to cap prices for two years.

What has changed?

• Mr Hunt confirmed the energy price guarantee will now end in April after which time the government will look to target help on those most in need.

IR35 rules

What was pledged?

• The government promised to “simplify” IR35 rules – the rules which govern off-payroll working. It promised to change the regulations so pensions funds can increase UK investments.

What has changed?

• Mr Hunt confirmed the government will now abandon these proposed IR35 changes.

Alcohol duty

What was pledged?

• The government said in the mini-budget that planned increases in the duties on beer, for cider, for wine, and for spirits would be cancelled.

What has changed?

• Mr Hunt confirmed this will now no longer be the case, with the price of beer, cider, wine and sprits soon rising.

Dividend tax change

What was pledged?

• The government announced in the mini-budget that from 6 April 2023, the additional rate applying to dividend income would be abolished and the 1.25% rise in the dividend rates, initially brought into force in April this year, would be reversed.

What has changed?

• Mr Hunt said the government will no longer reverse the 1.25% rise in the dividend rates.

VAT-free shopping

What was pledged?

• The government pledged VAT-free shopping for overseas visitors.

What has changed?

• Mr Hunt said this policy has now been scrapped.

Stamp duty

What was pledged?

• The government promised to cut stamp duty which is paid when people buy a property in England and Northern Ireland. It said no stamp duty would be paid on the first £250,000 of any property and no stamp duty on the first £425,000 for first-time buyers.

What has changed?

• Mr Hunt confirmed this is one of very few policies in the controversial mini-budget which will remain.

National Insurance

What was pledged?

• The government said it would reverse the recent rise in National Insurance from 6 November. Workers and employers have paid an extra 1.25% since April 2022.

What has changed?

• Mr Hunt confirmed that, like stamp duty, this policy has survived the mini-budget cull.

Bankers’ bonuses

What was pledged?

• The government announced it was scrapping rules which limit bankers’ bonuses.

What has changed?

• Mr Hunt did not mention bankers’ bonuses in his statement. But a Treasury source has told Sky News there is “no change in policy there.” They said the cap “was bad policy” adding that it “didn’t cap bankers pay and was bad for financial stability”.

World

At least 20 dead and 150 injured after magnitude 6.3 earthquake in north Afghanistan

Published

2 hours ago

November 3, 2025

admin

At least 20 dead and 150 injured after magnitude 6.3 earthquake in north Afghanistan

At least 20 people have died after a magnitude 6.3 earthquake in Afghanistan, the Taliban has said.

The tremor was recorded near the city of Mazar-e Sharif, in the northern Balkh province, at around 12.59am on Monday (8.29pm in the UK).

The Taliban Health Ministry added that 320 were injured, while ministry spokesperson Sharfat Zaman said that the numbers of dead and injured might rise.

The US Geological Survey (USGS) has issued an orange alert on its system of quake impacts, and suggested that “significant casualties are likely and the disaster is potentially widespread”.

Previous events at that alert level have required a regional or national level response, according to the USGS’s alert system.

Balkh province spokesperson Haji Zaid added that the earthquake destroyed part of the city’s holy shrine, known as the Blue Mosque.

The United Nations in Afghanistan said on X that it is on the ground assessing needs and delivering aid, and that: “We stand with the affected communities and will provide the necessary support.”

Mazar-e Sharif is the fifth-largest city in Afghanistan, with a population of around 523,000.

Located on two major active fault lines, Afghanistan is particularly vulnerable to earthquakes: More than 1,400 people were killed and at least 3,250 others injured after a magnitude 6.0 earthquake hit the country’s eastern regions in September.

That tremor wiped out villages in the Mazar Dara valley, which Sky’s Asia correspondent Cordelia Lynch visited in October.

In 2015, an earthquake struck northeastern Afghanistan, killing several hundred people in Afghanistan and nearby northern Pakistan.

Four large earthquakes also struck in the Herat province in 2023, each magnitude 6.3. The Taliban said at the time that at least 2,445 people had died.

This breaking news story is being updated and more details will be published shortly.

Please refresh the page for the latest version.

You can receive breaking news alerts on a smartphone or tablet via the Sky News app. You can also follow us on WhatsApp and subscribe to our YouTube channel to keep up with the latest news.

World

Hurricane Melissa leaves 28 dead after tearing through Jamaica

Published

1 day ago

November 2, 2025

admin

Hurricane Melissa leaves 28 dead after tearing through Jamaica

A total of 28 people have died following Hurricane Melissa’s rampage across Jamaica, the government has confirmed.

Melissa, one of the strongest storms on record to make landfall in the Caribbean, brought with it winds of up to 185mph when it hit the island earlier this week.

The Red Cross described it as a “disaster of unprecedented catastrophe”.

Melissa ravaged through Jamaica, Haiti, the Dominican Republic, and Cuba.

It weakened by the time it reached Cuba on Wednesday morning but still brought devastation – with houses collapsed and roads blocked.

A statement from the government of Jamaica said it was “deeply saddened to confirm 28 fatalities associated with the passage of Hurricane Melissa”.

It went on: “We extend heartfelt condolences to the families, friends, and communities mourning their loved ones.”

Eyewitness: ‘Send help’ – the desperate pleas from Hurricane Melissa survivors

The confirmation came as the first British repatriation flight was setting off from the island on Saturday evening local time.

The flight, chartered by the Foreign, Commonwealth and Development Office, was for those “unable to leave Jamaica on commercial routes”.

Essential relief supplies are now rolling into some of the hardest hit areas.

The UK government is mobilising an additional £5m in emergency humanitarian funding – on top of £2.5m announced earlier this week – to support the region’s recovery.

This new funding will enable the UK to send humanitarian supplies – including more than 3,000 shelter kits and over 1,500 solar-powered lanterns to help those whose homes have been damaged and those without power.

The UK is working with the World Food Programme and Red Cross, to ensure emergency relief reaches those who need it most.

At least 25 people died in the southern Haitian coastal town of Petit-Goave after the La Digue river burst its banks as a result of the hurricane, according to the town’s mayor Jean Bertrand Subreme.

World

Ukrainian troops ‘start surrendering’ in key city but Kyiv says situation ‘dynamic’

Published

2 days ago

November 1, 2025

admin

Ukrainian troops 'start surrendering' in key city but Kyiv says situation 'dynamic'

Ukrainian soldiers encircled by Russian forces in the key eastern city of Pokrovsk have started surrendering, the defence ministry in Moscow claims.

But Ukraine‘s military has pushed back on the report by the TASS state news agency, saying the situation is “difficult and dynamic”.

Kyiv has also claimed its positions in some districts of Pokrovsk have improved despite its city being infiltrated by Russian troops.

Latest: Russian attacks are ‘nuclear terrorism’, Ukraine warns

Ukraine is increasing its number of assault troops in the area, the 7th Rapid Response Corps said on Facebook.

And Ukrainian troops are also working to cut Moscow’s military logistics routes, it added.

The Russian defence ministry also said its forces defeated a team of Ukrainian special forces that headed to Pokrovsk in a bid to prevent Russian forces from advancing further into the city.

‘Footage of Ukrainian troops after surrendering’

It later posted videos of two Ukrainian troops who, it claimed, had surrendered.

The footage showed the men, one dressed in fatigues and the other in a dark green jacket, sat against a wall in a dark room, as they spoke of fierce fighting and encirclement by Russian forces.

The videos’ authenticity could not be independently verified, and there was no immediate public comment from Kyiv on the Russian ministry’s claims.

Ukraine’s President Volodymyr Zelenskyy has previously acknowledged that some Russian units had infiltrated the city. But he maintained that Ukraine is tackling them.

He said Russia had deployed 170,000 troops in Ukraine’s eastern Donetsk province, where Pokrovsk is located, in a major offensive to capture the city and claim a big battlefield victory.

‘Operation to destroy enemy forces’

Ukraine’s army chief Oleksandr Syrskyi said on Saturday the situation in Pokrovsk remained “hardest” for Ukrainian forces, who were trying to push Russian troops out.

But he insisted there was no encirclement or blockade as Moscow has claimed.

“A comprehensive operation to destroy and push out enemy forces from Pokrovsk is ongoing. The main burden lies on the shoulders of the units of the armed forces of Ukraine, particularly UAV operators and assault units,” Mr Syrskyi said.

Why is Pokrovsk important?

One of Moscow’s key aims has been to take all of Ukraine’s industrial heartland of coal-rich Donbas, which comprises of the Luhansk and Donetsk provinces. Kyiv still controls about 10% of Donbas.

Capturing Pokrovsk, which Russian media has dubbed “the gateway to Donetsk”, and Kostiantynivka to its northeast, would give Moscow a platform to drive north towards the two biggest remaining Ukrainian-controlled cities in Donetsk – Kramatorsk and Sloviansk.

‘Key Russian fuel pipeline struck’

Meanwhile, Ukraine’s military intelligence, known as HUR, has said its forces have hit an important fuel pipeline in the Moscow region that supplies the Russian army.

In a statement on Telegram, HUR said the operation late on Friday was a “serious blow” to Russia’s military logistics.

HUR said its forces struck the Koltsevoy pipeline, which is 250 miles long and supplies the Russian army with gasoline, diesel and jet fuel from refineries in Ryazan, Nizhny Novgorod and Moscow.

The operation, which targeted infrastructure near Ramensky district, destroyed all three fuel lines, HUR said.

The pipeline was capable of transporting up to three million tonnes of jet fuel, 2.8 million tonnes of diesel and 1.6 million tonnes of gasoline annually, HUR said.

Russia ‘targets gas production site’

Also overnight, Russia launched an attack on a gas production site in Poltava, in central Ukraine.

A fire broke out, the local administration said, but no injuries were reported.

Kyiv condemns ‘nuclear terrorism’

Ukraine’s foreign ministry has condemned Russian strikes this week on substations powering some of its nuclear plants.

It accused Russia of carrying out “targeted strikes on such substations” which “bear the hallmarks of nuclear terrorism”.

Elsewhere, a civilian died and 15 more were injured on Saturday morning after Russia struck the Mykolaiv region in southern Ukraine with a ballistic Iskander missile, local official Vitaliy Kim said.

A child was among those hurt in the strike, he added.