Martin Lewis gives urgent energy warning to Brits and shares verdict on Jeremy Hunt’s mini-budget shake-up
MARTIN Lewis issued an urgent warning to Brits as he shared his thoughts on Jeremy Hunt's mini-Budget shakeup.
The finance journalist said the new Chancellor left "Trussenomics totally hunted down and gone".
Mr Hunt today tore Ms Truss' economic plan to shreds, confirming Brits WON'T see income tax slashed.
He also confirmed that the Energy Price Guarantee - which sees bills 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.
Responding to the announcement, Mr Lewis warned Brits that any measures in April will need to "support middle earners" - and he stressed that "energy rates are still huge".
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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.";
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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."
Hitting out at the PM, Mr Lewis added: "It's arguable the entire economic problems Liz Truss has, stems back to her energy bill policy. Let me explain, in 5 points.
It comes as:
- 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
"During the zombie govt, due to leadership contest, even though it was blindingly obvious energy intervention was needed, no plans were made or promised
"Yet campaign pledges on tax cuts were made at that point, possibly without factoring in the cost of the coming unavoidable energy intervention.
"Liz Truss at the time also strongly poo-pooed handouts to differentiate from Rishi Sunak scheme.
";When they hit govt and it became blindingly obvious that intervention was needed.
"They needed to do it at breakneck speed, with urgent meets with the energy firms.
"The only route without it being called 'a handout' was a universal reduction - the most expensive intervention.
"Yet they still went ahead with the other promises too, and the combination of both seems to be what caused the house of cards to tumble.
"PS this is one take on it. I'm not in the inner circles of govt so some is supposition."
In today's bombshell announcement, Mr Hunt confirmed that the Treasury will review how hard-up Brits should be supported from April - when the energy price guarantee ends.
But all other mini-Budget tax cut promises have been dumped in the bin.
These include scrapping VAT for foreign tourists visiting the UK and freezing alcohol duty rates from next year.
The massive policy cull is estimated to save £32bn per year.
Mr Hunt said: "As I promised at the weekend, our priority in making the difficult decisions that lie ahead will always be the most vulnerable and I remain extremely confident about the UK's long-term economic prospects as we deliver our mission to go for growth.
"But growth requires confidence and stability, and the United Kingdom will always pay its way.
"This Government will therefore make whatever tough decisions are necessary to do so."
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The Chancellor's statement is the latest government effort to calm jittery markets after borrowing costs continued to increase on Friday.
Further details on the Treasury's plans will come at 3.30pm, when Mr Hunt makes a second statement in the Commons.
For weeks financial markets have suffered as a result of the PM's disastrous mini-Budget.
The tax slashing bonanza spooked the City after it failed to clarify how £45bn of cuts would be paid for.
Today, Mr Hunt unveiled his Medium Term Fiscal Plan to undo the damage.
The plan was due to happen on October 31 to reassure markets Britain has a strategy to pay down its soaring debts.
But Mr Hunt is wasting no time trying to show the public that the Treasury is under new management, after Kwasi Kwarteng was fired last Friday.
As Mr Hunt reversed almost all of Mr Kwarteng's mini-Budget promises, yields on 30 year gilts carried on falling by 0.4 per cent to 4.36 per cent.
The Chancellor's emphasis on stability was well received by foreign exchange, with the pound trading 1.30 per cent higher to $1.13.
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A third statement on the Medium Term Fiscal Plan will still go ahead on Halloween.
The Office for Budget Responsibility's assessment of the plan will be published then, and a government decision on whether to uprate benefits in line with inflation will also be revealed.