Truss confirms Corporation Tax U-turn

Truss confirms Corporation Tax U-turn


Todays other news


As expected there has been another substantial U-turn by Prime Minister Liz Truss.

A few minutes after sacking her former Chancellor Kwasi Kwarteng, Truss announced that “parts of her mini-Budget” upset the markets.

So Corporation Tax will rise to 25 per cent from next year – not remain at 19 per cent as Truss and Kwarteng originally wanted.

Jeremy Hunt, a former Health Secretary under Theresa May, has ageeed to become Chancellor.

The latest U-turn came at a brief news conference in which she took just four questions from journalists, all asking about her own political future.

“This is very difficult” Truss admitted.

Kwarteng was sacked three weeks after unveiling £45 billion of unfunded tax cuts in the mini-Budget.

The plummeting pound and the decision of the Bank of England to intervene prompted the first Truss U-turn – reversing the scrapping of the 45p rate of income tax for higher earners.

Savills has responded to the news, issuing a statement saying: “Already we have seen long-term gilt yields fall on the back of rumours that the government will be backing down on some of Kwarteng’s unfunded tax cuts – and confirmation, as well as news of his dismissal as Chancellor, should help to push yields down further, allowing the Bank of England to slow its pace of monetary tightening and easing pressure on mortgage costs. And with more breathing room, lenders should feel the confidence to put more products back out to the market.

“As a result, we believe that some of the existing downward pressure on house prices and transactions will be tempered. That said, the market will still need to adjust to the current higher interest rate environment, though perhaps not at such an amplified level.”

Tags:

Share this article ...

Join the conversation: Login and have your say

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions. All comments are screened using specialist software and may be reviewed by our editorial team before publication. Letting Agent Today reserves the right to edit, withhold or delete comments that violate our guidelines, including those that harass, degrade, or intimidate others. Users who post such content may be banned from commenting.
By commenting, you agree to our Commenting Terms of Use.
4 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Recommended for you
Related Articles
The Welsh Government is backing the call for a 'compensation'...
There will be a greater emphasis on digitisation....
A consultation document is being released today....
Recommended for you
Latest Features
Andrews Property Group is under charitable ownership...
New tenancies in England and Wales are at their lowest...
The Scottish system would differ from the UK system in...
Sponsored Content
Tenants want a place they can call home—somewhere comfortable, safe,...
Letting agencies face the dual challenge of keeping both landlords...

Send to a friend

In order to send this article to a friend you must first login. Click on the button below to login or sign up.

No one likes pop-ups ...
But while you're here