UK Government – Page 95 – The NEN

Help for vulnerable people to spot disinformation and boost online safety

Elderly, disabled and other vulnerable people will get better support to stay safe online and avoid being misled by disinformation thanks to a funding boost from the government to mark UNESCO Global Media and Information Literacy Week.

Funding awarded to improve media literacy among vulnerable and ‘hard-to-reach’ groups
Will support projects across the UK to ensure everyone can protect themselves from online disinformation
Part of the government’s Online Media Literacy Strategy to help people be safe online

Elderly, disabled and other vulnerable people will get better support to stay safe online and avoid being misled by disinformation thanks to a funding boost from the government to mark UNESCO Global Media and Information Literacy Week.

More than £1 million has been granted to 17 UK organisations to pilot new ways of boosting media literacy skills for people at risk of experiencing online abuse and being deceived into believing false information, such as vaccine disinformation, deepfake videos or propaganda created by hostile states.

Research shows some people struggle to engage and benefit from the range of media literacy education on offer, due to limited experience or overconfidence in using the internet, as well as a lack of awareness of how to access resources and their unavailability outside of schools and colleges.

The Media Literacy Taskforce Fund is one of two funding schemes created to target ‘hard-to-reach’ and vulnerable groups by investing in community-led projects to ensure everyone has the opportunity to improve their media literacy skills and protect themselves from online disinformation.

Social enterprise Freshrb will work with young people to develop their own podcasts exploring online dis- and misinformation to be aired on local radio. Another project run by charity Internet Matters will provide media literacy training for dozens of care workers and leavers in the Greater Manchester area.

Elderly people from diverse backgrounds in Leeds will have access to digital media skills training online and in community centres as part of the Leeds Older People’s Forum. Parent Zone is working with eight local councils including Calderdale, Luton and Middlesborough to deliver media literacy resources tailored to parents and carers of teenagers.

A separate scheme, the Media Literacy Programme Fund, will deliver training courses, online learning, tech solutions and mentoring schemes to vulnerable internet users.

Digital Secretary Michelle Donelan said: “With the rise of online disinformation, teaching people to identify fact from fiction has never been more important to public safety.

“As well as bringing forward new laws to tackle the root causes of these problems, we are funding organisations to give people the skills to stay safe online so everyone can benefit from all the internet has to offer.”

Winning projects in the Media Literacy Programme Fund to receive grants today include:

NewsGuard, which will work with ageing-focused charities to, deliver workshops to older adults to support them in spotting mis- and disinformation online;
The Economist Educational Foundation will work with disadvantaged schools and boost teachers’ skills through news literacy training and support students to engage with the news and think critically about what they’re consuming online;
Online Safety charity Glitch will deliver workshops and training to vulnerable and marginalised women to support their media literacy skills including tackling online abuse.

All the schemes are part of the government’s plans to deliver the Online Media Literacy Strategy, a national action plan to empower people to stay safe online by giving them the skills they need to think critically about what they see and read on the internet.

Launched in July 2021, the three-year strategy supports media literacy organisations to deliver education and initiatives in a more wide-reaching and effective way. The year two plan, published in April, is backed by more than £2 million in targeted funding, including today’s announcement.

This is in addition to the £250,000 grant funding delivered to five organisations working with schools to adapt media literacy resources for teachers working with disabled students in our year one action plan.

GMW_flyer_MEDIA_v3-1 Download

The announcement coincides with the UNESCO Global Media and Information Literacy Week, a global initiative celebrating the progress countries have made toward making media literacy education more accessible to its citizens by implementing national media and information literacy policies.

The grant funding complements the measures in the groundbreaking Online Safety Bill, which supports a safer online environment by requiring tech firms to protect children from harmful content and tackle criminal activity on their platforms.

Rishi Sunak: “I will earn your trust”

Prime Minister Rishi Sunak’s statement on the steps of Downing Street

Good morning, I have just been to Buckingham Palace and accepted His Majesty The King’s invitation to form a government in his name.

It is only right to explain why I am standing here as your new Prime Minister.

Right now our country is facing a profound economic crisis.

The aftermath of Covid still lingers.

Putin’s war in Ukraine has destabilised energy markets and supply chains the world over.

I want to pay tribute to my predecessor Liz Truss, she was not wrong to want to improve growth in this country, it is a noble aim.

And I admired her restlessness to create change.

But some mistakes were made.

Not borne of ill will or bad intentions. Quite the opposite, in fact. But mistakes nonetheless.

And I have been elected as leader of my party, and your Prime Minister, in part, to fix them.

And that work begins immediately.

I will place economic stability and confidence at the heart of this government’s agenda.

This will mean difficult decisions to come.

But you saw me during Covid, doing everything I could, to protect people and businesses, with schemes like furlough.

There are always limits, more so now than ever, but I promise you this

I will bring that same compassion to the challenges we face today.

The government I lead will not leave the next generation, your children and grandchildren, with a debt to settle that we were too weak to pay ourselves.

I will unite our country, not with words, but with action.

I will work day in and day out to deliver for you.

This government will have integrity, professionalism and accountability at every level.

Trust is earned. And I will earn yours.

I will always be grateful to Boris Johnson for his incredible achievements as Prime Minister, and I treasure his warmth and generosity of spirit.

And I know he would agree that the mandate my party earned in 2019 is not the sole property of any one individual, it is a mandate that belongs to and unites all of us.

And the heart of that mandate is our manifesto.

I will deliver on its promise.

A stronger NHS.

Better schools.

Safer streets.

Control of our borders.

Protecting our environment.

Supporting our armed forces.

Levelling up and building an economy that embraces the opportunities of Brexit, where businesses invest, innovate, and create jobs.

I understand how difficult this moment is.

After the billions of pounds it cost us to combat Covid, after all the dislocation that caused in the midst of a terrible war that must be seen successfully to its conclusions I fully appreciate how hard things are.

And I understand too that I have work to do to restore trust after all that has happened.

All I can say is that I am not daunted. I know the high office I have accepted and I hope to live up to its demands.

But when the opportunity to serve comes along, you cannot question the moment, only your willingness.

So I stand here before you ready to lead our country into the future.

To put your needs above politics.

To reach out and build a government that represents the very best traditions of my party.

Together we can achieve incredible things.

We will create a future worthy of the sacrifices so many have made and fill tomorrow, and everyday thereafter with hope.

Thank you.

New vaccine marketing campaign urges millions to boost their immunity

COVID-19 and flu marketing campaign launches in England today encouraging eligible people to get their vaccines ahead of winter

A new country-wide marketing campaign urging millions of eligible people to get their flu and COVID-19 booster vaccines to top up their immunity will launch today (Monday 24 October), as almost 10 million people in England have already received their boosters.

Over-50s in Scotland can book their winter vaccines from today (October 24) protecting them from COVID-19 and flu, easing pressure on the NHS this winter.

Adverts will air across television, radio, social and digital media, stressing the importance of people getting both vaccines to increase their protection this winter.

Targeted communications for individuals with long term health conditions, pregnant women and ethnic minority communities, with a particular focus on those with low vaccine confidence, will also appear, and will include examples of where vaccine uptake rates have been low in the past.

More than 10 million people are expected to have received their COVID-19 autumn booster in England by today, with 49.5% of those 65 and over getting their flu jab, helping protect against serious illness throughout the winter.

Latest COVID-19 data has shown continued high rates of cases and hospitalisations in recent weeks.

Cases of flu have climbed quickly in the past week, indicating that the season has started earlier than normal. This is leading to increased pressure on emergency departments, with rates of hospitalisations and ICU admissions rising fastest in children under 5.

Deputy Prime Minister and Health and Social Care Secretary, Thérèse Coffey received her autumn booster this week and urges those eligible to take up the offer as soon as possible, saying: “Our COVID autumn booster and flu vaccination programmes are in full swing. Vaccines are our best line of defence against both viruses and will help keep people out of hospital this winter.

“While we have made great progress with almost 10 million people already boosted, including me, we are actively encouraging, through our new marketing campaign, everybody eligible to come forward for both jabs as soon as possible.”

Vaccination for flu is currently behind last season for pre-schoolers (12.1% in all 2 year olds and 12.8% in all 3 year olds), pregnant women (12.4%) and under 65s in a clinical risk group (18.2%).

Vaccines are the best defence against both viruses and will help reduce the amount of people requiring hospital treatment, reducing pressure on the NHS.

Deputy Chief Medical Officer for England, Dr Thomas Waite said: “The restrictions we had in place to curb the spread of COVID and protect the NHS last year also prevented the flu virus from spreading as we would normally expect to see, so levels of immunity in the population are likely quite low.

“Flu has started circulating at low levels, mainly in children and younger people at the moment. As winter approaches, we can expect flu and COVID cases to rise in all age groups. Getting vaccinated against both viruses is the most important thing you can do to reduce your chances of getting seriously ill.

“If eligible please come forward for your jabs as soon as you can – it is important to be protected before any winter surges begin.”

Dr Mary Ramsay, Director of Immunisations at UK Health Security Agency, said: “The latest data follows the pattern we predicted, and a difficult winter is expected.

“This year we want people to think about COVID-19 and flu as equally important – and both vaccines will provide a ‘boost’ this winter. COVID-19 vaccine protection decreases over time and topping up immunity will help to provide better protection against new variants.

“So far, we have seen millions of people getting their vaccines, particularly older age groups who remain at risk of severe illness and deaths from both diseases. Having both vaccines will help to protect you and to protect the health service so we can continue to treat patients with other conditions.

“I urge everyone who is eligible to book your vaccine as soon as you can and not to delay – you could be in contact with flu or COVID-19 tomorrow.”

NHS director for vaccinations and screening, Steve Russell said: “Thanks to the efforts of staff, the NHS autumn booster programme has vaccinated twice as many people as it had at this stage last year with almost 10 million people getting their COVID-19 boosters already.

“We are seeing evidence of increasing levels of COVID and flu infections in the community and care homes, and so ahead of what will be a very challenging winter, it is vital that everyone eligible gets protected; it has never been easier to get your vaccines, so book in without delay.

Building on the success of the 2021 to 2022 COVID-19 vaccination campaign, this year’s campaign will stress that the protection provided by vaccines wanes over time, so everyone eligible should boost their immunity by getting both vaccines ahead of a difficult winter.

The adverts use blue (flu) and yellow (COVID-19) halos to represent the protection both vaccines provide.

They will run on TV, video on demand, radio, social and digital channels. Highly targeted, eye-catching information on digital channels will help to reiterate the importance of boosting your immunity ahead of a difficult winter by booking jabs early.

The NHS Winter Vaccines chatbot will return, helping to guide those who are searching online for the right information. This instant online conversation tool was first developed to support last winter’s campaign and answers frequently asked questions with trusted NHS information in a single place.

Multicultural community activity will see teams of campaign ambassadors engage with a range of different ethnic groups who tend to be more vaccine hesitant. This will take place across the country in high footfall places of worship and nearby community settings. Dedicated radio adverts and unique social media material will reinforce key messages.

Around 33 million people are eligible for the flu vaccine and 26 million people are eligible for the COVID-19 booster in England.

Over-50s in Scotland can book their winter vaccines from today (October 24) protecting them from COVID-19 and flu, easing pressure on the NHS this winter.

Infected blood scandal: £100,000 interim compensation payments to be made this month

Compensation will not be taxed or be subject to NI deductions and will be made UK-wide, delivering on the government’s commitment to meet interim recommendations of the inquiry.

Thousands of victims of the historic infected blood scandal, which occurred in the 70’s and 80’s, are being contacted this week to confirm that interim compensation payments will be made by the end of October.

The payments deliver the government’s commitment to meet, in full, the recommendations set out by infected blood inquiry chairman Sir Brian Langstaff in his interim report.

Infected individuals and bereaved partners who are registered with any of the four UK infected blood support schemes will receive letters this week confirming the £100,000 alongside details of how the money will be paid.

This follows confirmation that payments will not be subject to any tax or national insurance deductions. Neither will they affect any financial benefits support an individual is receiving.

Chancellor of the Duchy of Lancaster, Nadhim Zahawi, said: “I know from my own discussions with constituents who are victims of the infected blood scandal just how traumatic their heart-breaking experiences have been and I was proud to campaign as an MP on their behalf and continue that work as a government minister.

“No level of compensation will ever make up for the appalling treatment and circumstances that those affected by this scandal and their families have had to endure, but I hope that these interim payments go some way to demonstrate that we are, and always will be, on their side.”

Minister of State for Health, Will Quince, said: “The infected blood tragedy should never have happened. That’s why we’ve accepted Sir Brian Langstaff’s interim recommendations in full to help right this historic wrong for the thousands of people infected and bereaved partners left behind.

It’s right these interim compensation payments are being made as quickly as possible and I want to thank NHSBSA and the other UK scheme administrators for their relentless work on this. We’re continuing to listen and will be looking closely at any further recommendations as the Inquiry concludes.

The interim compensation payments will build on the support to those affected by the scandal already provided by the four UK infected blood support schemes.

The Government will respond to any further recommendations made by the Infected Blood Inquiry and its Chair Sir Brian Langstaff when the Inquiry concludes next year.

These interim compensation payments are expected to reach around £400 million for the whole UK, with agreement also reached for payments to be made through schemes in Scotland, Wales and Northern Ireland as well as those in England.

TRUSS RESIGNS

PRIME Minister Liz Truss has resigned after just six weeks in post.

Truss, who yesterday declared she was ‘a fighter, not a quitter’, has, well, quit after just 45 days in the job.

Her resignation statement was equally short:

I came into office at a time of great economic and international instability.

Families and businesses were worried about how to pay their bills.

Putin’s illegal war in Ukraine threatens the security of our whole continent.

And our country had been held back for too long by low economic growth.

I was elected by the Conservative Party with a mandate to change this.

We delivered on energy bills and on cutting national insurance.

And we set out a vision for a low tax, high growth economy – that would take advantage of the freedoms of Brexit.

I recognise though, given the situation, I cannot deliver the mandate on which I was elected by the Conservative Party.

I have therefore spoken to His Majesty The King to notify him that I am resigning as Leader of the Conservative Party.

This morning I met the Chair of the 1922 Committee Sir Graham Brady.

We have agreed there will be a leadership election to be completed in the next week.

This will ensure we remain on a path to deliver our fiscal plans and maintain our country’s economic stability and national security.

I will remain as Prime Minister until a successor has been chosen.

Thank you.

Scotland’s First Minister Nicola Sturgeon tweeted:”There are no words to describe this utter shambles adequately. It’s beyond hyperbole – & parody. Reality tho(ugh) is that ordinary people are paying the price.

“The interests of the Tory party should concern no-one right now. A General Election is now a democratic imperative.”

Labour leader Sir Keir Starmer said: “After 12 years of Tory failure, the British people deserve so much better than this revolving door of chaos. We need a general election, now.”

His full statement:

Truss will remain as PM until her successor is elected – not by the people of Great Britain, but by Tory MPs.

NOW, WHAT COULD POSSIBLY GO WRONG?

Death throes of a dying Government?

CHAOTIC TORY GOVERNMENT LURCHES FROM CRISIS TO CRISIS

HOME SECRETARY RESIGNS

DEFIANT TRUSS CLINGS ON – FOR NOW

Suella Braveman’s scathing resignation letter:

Prime Minister’s response:

If the resignation of another senior government minister was serious enough, worse was to follow on a chaotic evening at Westminster as Tory whips were accused of bullying and physically manhandling MPs over a crucial vote on fracking.

Both the Chief Whip and Deputy Chief Whip resigned – or maybe they didn’t.

Chaos. Utter chaos.

At time of writing Liz Truss remains in post as Prime Minister, clinging on despite her authority collapsing around her. Whether she will still be there this evening is anyone’s guess.

CRISIS: Chancellor’s Statement to the House of Commons, 17th October

Mr Speaker,

The central responsibility of any government is to do what is necessary for economic stability.

Behind the decisions we take and the issues on which we vote are jobs families depend on, mortgages that have to be paid, savings for pensioners, and businesses investing for the future.

We are a country that funds our promises and pays our debts.

And when that is questioned, as it has been, this government will take the difficult decisions necessary to ensure there is trust and confidence in our national finances.

That means decisions of eye-watering difficulty.

But I give the House and the public this assurance: every single one of those decisions…

…whether reductions in spending or increases in tax, will prioritise the needs of the most vulnerable.

That is why I pay tribute to my predecessors for the Energy Price Guarantee, for the furlough scheme…

…and indeed for even earlier decisions to protect the NHS budget in a period when other budgets were being cut.

Mr Speaker, I want to be completely frank about the scale of the economic challenges we face.

We have had short term difficulties caused by the lack of an OBR forecast alongside the mini-budget…

…but there are also inflationary and interest pressures around the world.

Russia’s unforgivable invasion of Ukraine has caused energy and food prices to spike.

We cannot control what is happening in the rest of the world, but when the interests of economic stability mean the government needs to change course, we will do so – and that is what I have come to the House to announce today.

In my first few days in this job, I’ve held extensive discussions with the Prime Minister, Cabinet colleagues, the Governor of the Bank of England, the OBR, the head of the Debt Management Office, Treasury officials, and many others.

The conclusion I have drawn from those conversations is that we need to do more, more quickly, to give certainty to the markets about our fiscal plans.

And show through action, not just words, that the United Kingdom can and always will pay our way in the world.

We have therefore decided to make further changes to the mini budget immediately, rather than waiting until the Medium-Term Fiscal Plan in two weeks’ time, in order to reduce unhelpful speculation about those plans.

Mr Speaker I am very grateful for your agreement on the need to give the markets an early, brief summary this morning, but I welcome the opportunity to give the House details of the decisions now.

We have decided on the following changes to support confidence and stability.

Firstly, the Prime Minister and I agreed yesterday to reverse almost all the tax measures announced in the Growth Plan three weeks ago that have not been legislated for in Parliament.

So we will continue with the abolition of the Health and Social Care Levy, changes to Stamp Duty, the increase in the Annual Investment Allowance to £1 million, and the wider reforms to investment taxes.

But we will no longer be proceeding with:

The cut to dividend tax rates, saving around £1 billion a year.

The reversal of the off-payroll working reforms introduced in 2017 and 2021, saving around £2 billion a year.

The new VAT-free shopping scheme for non-UK visitors, saving a further £2 billion a year.

Or the freeze to alcohol duty rates, saving around £600 million a year.

I will provide further details on how those rates will be uprated, shortly.

Second, the Government is currently committed to cutting the basic rate of income tax to 19% in April of 2023.

This government believes that people should keep more of the money they earn, which is why we have continued with the abolition of the Health and Social Care Levy.

But at a time when markets are asking serious questions about our commitment to sound public finances, we cannot afford a permanent, discretionary increase in borrowing worth £6 billion a year.

So I have decided that the basic rate of income tax will remain at 20% – and it will do so indefinitely, until economic circumstances allow for it to be cut.

Taken together with the decision not to cut Corporation Tax, and restoring the top rate of income tax, the measures I’ve announced today will raise around £32 billion every year.

The third step I’m taking today, Mr Speaker, is to review the Energy Price Guarantee.

This was the biggest single expense in the Growth Plan and one of the most generous schemes in the world.

It is a landmark policy for which I pay tribute to my predecessor.

It will support millions of people through a difficult winter and will reduce inflation by up to 5%.

So I confirm today that the support we are providing between now and April next year will not change.

But beyond next April, the Prime Minister and I have agreed it would not be responsible to continue exposing the public finances to unlimited volatility in international gas prices.

So I am announcing today a Treasury-led review into how we support energy bills beyond April next year.

The review’s objective is to 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 will be targeted to those most affected. And the new approach will better incentivise energy efficiency.

There remain many difficult decisions to be announced in the Medium-Term Fiscal Plan on October 31st …

…when I confirm that we will publish a credible, transparent, fully costed plan to get debt falling as a share of the economy over the medium term…

…based on the judgement and economic forecasts of the independent Office for Budget Responsibility.

I would like to thank the OBR, whose director Richard Hughes I met this morning, and the Bank of England whose Governor Andrew Bailey I have now met twice.

I fully support the vital, independent roles both institutions play, which give markets, the public, and the world confidence that our economic plans are credible, and rightly hold us to account for delivering them.

But I want some more independent, expert advice as I start my journey as Chancellor.

So I am announcing today the formation of a new Economic Advisory Council to do just that.

The Council will advise the government on economic policy with the first four names announced today:

Rupert Harrison, former Chief of Staff to the Chancellor of the Exchequer,
Gertjan Vlieghe, Element Capital
Sushil Wadhwani, Wadhwani Asset Management
Karen Ward, J. P. Morgan

Mr Speaker,

We remain completely committed to our mission to go for growth, but growth requires confidence and stability – which is why we are taking many difficult decisions, starting today.

But while we do need realism about the challenges ahead, we must never fall into the trap of pessimism.

Despite all the adversity and challenge we face, there is enormous potential in this country.

We have some of the most talented people in the world.

Three of the world’s top ten best universities.

The most tech unicorns in Europe.

One of the world’s great financial centres.

Incredible strengths in the creative industries…

…in science, research, engineering, manufacturing, and innovation.

All that gives me genuine optimism about our long-term prospects for growth.

But to achieve that, it’s vital that we act now to create the stability on which future generations can build.

The reason the United Kingdom has always succeeded is because at big and difficult moments we have taken tough and difficult decisions in the long-term interests of the country. That is what will we now do.

And I commend this statement to the House.

Hunt statement fails to undo damage to families and businesses and leaves more uncertainty, says TUC

Commenting on the Chancellor Jeremy Hunt’s fiscal statement), TUC General Secretary Frances O’Grady said: “The Conservatives drove the UK economy over a cliff. Hunt slamming the gears into reverse now won’t help families and businesses already hit by soaring borrowing costs.

“People needed reassurances today. Instead, they got more uncertainty – about energy bills, about our public services, and about whether universal credit and benefits will rise with inflation.

“We are now on the brink of a deep and damaging recession that threatens millions of jobs. But the latest Conservative Chancellor still has the same basic approach that got us into this mess.

“The Chancellor should have announced a boost to universal credit and pensions, and a comprehensive plan to get wages rising faster for everyone. And he should have announced a much higher windfall tax on oil and gas giants.”

On the announcement of a review of support for families and businesses with energy costs beyond April 2023, she added:

“Families and businesses now face months of worry. There is going to be less help with bills – but no-one knows who will lose out, by how much, or whether there will finally be a programme to fix Britain’s cold and draughty homes. This is not the reassurance working families need.”

Crisis, What Crisis? Chancellor to deliver emergency statement on the Medium-Term Fiscal Plan

HUNT MOVES TO STEADY MARKET JITTERS

The Chancellor will make a statement at 11am, bringing forward measures from the Medium-Term Fiscal Plan that will support fiscal sustainability.

He will also make a statement in the House of Commons this afternoon.

This follows the Prime Minister’s statement on Friday, and further conversations between the Prime Minister and the Chancellor over the weekend, to ensure sustainable public finances underpin economic growth.

The Chancellor will then deliver the full Medium-Term Fiscal Plan to be published alongside a forecast from the independent Office for Budget Responsibility on 31 October.

The Chancellor met with the Governor of the Bank of England and the Head of the Debt Management Office last night to brief them on these plans.

That racket you hear is those infamous Mini-Budget economic plans being put through the shredder – Ed. …

UPDATE: The Chancellor of The Exchequer Jeremy Hunt has today, Monday 17 October, brought forward a number of measures from 31 October’s Medium-Term Fiscal Plan:

Changes designed to ensure the UK’s economic stability and provide confidence in the government’s commitment to fiscal discipline
Basic rate of income tax to remain at 20% until economic conditions allow for it to be cut, IR35 and dividend tax rate reforms no longer going ahead
Treasury-led review of energy support after April 2023 launched

Following conversations with the Prime Minister, the Chancellor has taken these decisions to ensure the UK’s economic stability and to provide confidence in the government’s commitment to fiscal discipline.

The Chancellor made clear in his statement that the UK’s public finances must be on a sustainable path into the medium term.

Today’s announcement represents another down payment following the reversal of the corporation tax cut announced on Friday 14 October by the Prime Minister. The Chancellor will publish the government’s fiscal rules alongside an OBR forecast, and further measures, on 31 October.

In his statement the Chancellor announced a reversal of almost all of the tax measures set out in the Growth Plan that have not been legislated for in parliament.

The following tax policies will no longer be taken forward:

Cutting the basic rate of income tax to 19% from April 2023. While the government aims to proceed with the cut in due course, this will only take place when economic conditions allow for it and a change is affordable. The basic rate of income tax will therefore remain at 20% indefinitely. This is worth around £6 billion a year.
Cutting dividends tax by 1.25 percentage points from April 2023. The 1.25 percentage points increase, which took effect in April 2022, will now remain in place. This is valued at around £1 billion a year.
Repealing the 2017 and 2021 reforms to the off-payroll working rules (also known as IR35) from April 2023. The reforms will now remain in place. This will cut the cost of the government’s Growth Plan by around £2 billion a year.
Introducing a new VAT-free shopping scheme for non-UK visitors to Great Britain. Not proceeding with this scheme is worth around £2 billion a year.
Freezing alcohol duty rates from 1 February 2023 for a year. Not proceeding with the freeze is worth approximately £600 million a year. The next steps of the Alcohol Duty Review announced in Growth Plan 2022 will continue as planned. The alcohol duty uprating decision and interactions with the wider reforms to alcohol duties under the Alcohol Duty Review will be considered in due course.

This follows on from the previously announced decisions not to proceed with the Growth Plan proposals to remove the additional rate of income tax and to cancel the planned increase in the corporation tax rate.

Taken together, these changes are estimated to be worth around £32 billion a year.

The government’s reversal of the National Insurance increase and the Health and Social Care Levy, and the cuts to Stamp Duty Land Tax, will remain benefitting millions of people and businesses. The £1 million Annual Investment Allowance, the Seed Enterprise Investment Scheme and the Company Share Options Plan will also continue to further support business investment.

Energy bills support review

The government has announced unprecedented support within its Growth Plan to protect households and businesses from high energy prices. The Energy Price Guarantee and the Energy Bill Relief Scheme are supporting millions of households and businesses with rising energy costs, and the Chancellor made clear they will continue to do so from now until April next year.

However, looking beyond April, the Prime Minister and the Chancellor have agreed that it would be irresponsible for the government to continue exposing the public finances to unlimited volatility in international gas prices.

A Treasury-led review will therefore be launched to consider how to support households and businesses with energy bills after April 2023. The objective of the review is to design a new approach that will cost the taxpayer significantly less than planned whilst ensuring enough support for those in need. The Chancellor also said in his statement that any support for businesses will be targeted to those most affected, and that the new approach will better incentivise energy efficiency.

The government is prepared to act decisively and at scale to regain the country’s confidence and trust. The Chancellor stated in his speech that there will be more difficult decisions to take on both tax and spending. This means doing what is needed to lower debt in the medium term and to ensure that taxpayers’ money is well spent, putting public finances on a sustainable footing.

In light of this, government departments will be asked to find efficiencies within their budgets. The Chancellor is expected to announce further changes to fiscal policy on 31 October to put the public finances on a sustainable footing.

Further information

Table of total benefit of tax policy reversals:

Policy (£bn)	2022-23	2023-24	2024-25	2025-26	2026-27
Re-instate plans to raise Corporation Tax to 25% from April 2023	+2.3	+12.4	+16.6	+17.6	+18.7
Suspend 1p reduction in the basic rate of income tax	0	+5.3	+5.9	+5.8	+5.9
Maintain additional rate of income tax	+2.4	-0.6	+0.8	+2.2	+2.1
Maintain 1.25 percentage point increase in dividends tax rates	0	+1.4	-1.0	+1.1	+0.9
Maintain 2017 and 2021 reforms to off-payroll working rules (also known as IR35)	0	+1.1	+1.4	+1.7	+2.0
Cancel VAT-free shopping scheme for non-UK visitors to Great Britain	0	0	+1.3	+2.0	+2.1
Cancel one year freeze to alcohol duty rates	+0.1	+0.5	+0.6	+0.6	+0.6
Total	+4.7	+20.1	+25.4	+30.9	+32.3

Costings in the table are as set out in the Growth Plan 2022 – except for the 1p reduction in the basic rate of income tax, which is the costing from Spring Statement 2022 as adjusted in the Growth Plan 2022. Final costings will be set out as part of the Medium-Term Fiscal Plan on 31 October. Totals may not sum due to rounding.

THE CHANCELLOR’s STATEMENT:

A central responsibility for any Government is to do what is necessary for economic stability.

This is vital for businesses making long-term investment decisions and for families concerned about their jobs, their mortgages, and the cost of living.

No government can control markets, but every government can give certainty about the sustainability of public finances and that is one of the many factors influencing how markets behave.

And for that reason, although the Prime Minister and I are both committed to cutting corporation tax on Friday she listened to concerns about the mini budget and confirmed we will not proceed with the cut to Corporation Tax announced.

The government has today decided to make further changes to the mini budget.

And to reduce unhelpful speculation about what they are, we have decided to announce these ahead of the Medium-Term Fiscal Plan, which happens in two weeks.

I will give a detailed statement to Parliament and answer questions from Members of Parliament.

But because these decisions are market sensitive, I have agreed with the Speaker the need to give an early, brief summary of the changes which are all designed to provide confidence and stability.

Firstly, we will reverse almost all the tax measures announced in the Growth Plan three weeks ago that have not started Parliamentary legislation.

So whilst we will continue with the abolition of the Health and Social Care Levy and Stamp Duty changes we will no longer be proceeding with:

The cut to dividend tax rates.
The reversal of off-payroll working reforms introduced in 2017 and 2021.
The new VAT-free shopping scheme for non-UK visitors.
Or the freeze on alcohol duty rates.

Secondly, the government’s current plan is to cut the basic rate of income tax to 19% from April 2023.

But at a time when markets are rightly demanding commitment to sustainable public finances, it is not right to borrow to fund this tax cut. So I have decided that the basic rate of income tax will remain at 20% and it will do so indefinitely, until economic circumstances allow for it to be cut.

Taken together with the decision not to cut Corporation Tax, and restoring the top rate of income tax the measures I’ve announced today will raise, every year, around £32bn.

Finally, the biggest single expense in the Growth Plan was the Energy Price Guarantee.

This is a landmark policy supporting millions of people through a difficult winter and today I want to confirm that the support we are providing between now and April next year will not change.

But beyond that, the Prime Minister and I have agreed it would not be responsible to continue exposing public finances to unlimited volatility in international gas prices. So I am announcing today a Treasury-led review into how we support energy bills beyond April next year.

The objective is to 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 will be targeted to those most affected.

And the new approach will better incentivise energy efficiency.

The most important objective for our country right now is stability.

Governments cannot eliminate volatility in markets, but they can play their part, and we will do so because instability affects the prices of things in shops, the cost of mortgages, and the value of pensions.

There will be more difficult decisions to take on both tax and spending as we deliver our commitment to get debt falling as a share of the economy over the medium term.

All departments will need to redouble their efforts to find savings, and some areas of spending will need to be cut.

But, 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.

REACTION:

Commenting on the Chancellor Jeremy Hunt’s fiscal statement today (Monday), TUC General Secretary Frances O’Grady said: “The Conservatives drove the UK economy over a cliff. Hunt slamming the gears into reverse now won’t help families and businesses already hit by soaring borrowing costs.

“People needed reassurances today. Instead, they got more uncertainty – about energy bills, about our public services, and about whether universal credit and benefits will rise with inflation.

“We are now on the brink of a deep and damaging recession that threatens millions of jobs. But the latest Conservative Chancellor still has the same basic approach that got us into this mess.

On the announcement of a review of support for families and businesses with energy costs beyond April 2023, she added: “Families and businesses now face months of worry. There is going to be less help with bills – but no-one knows who will lose out, by how much, or whether there will finally be a programme to fix Britain’s cold and draughty homes. This is not the reassurance working families need.”

Director of Policy & Communications at Independent Age, John Palmer, said: “Older people living on low and modest incomes were hoping to be reassured today, but frustratingly the Chancellor’s statement posed more questions than answers.

“Instead of ensuring stability, today only provided uncertainty. The review of the Energy Price Guarantee is extremely concerning. It’s no longer clear who will receive support beyond April 2023. Now millions of older people are wondering if they will be abandoned by the government and left with unaffordable energy bills and freezing homes next year.

“We know that many people in later life are already making dangerous cutbacks on heating and food. Our own polling revealed that 65% of older people plan to use less heating this winter.

“The government must ensure that its new targeted approach from next year helps older people in financial hardship, including the 850,000 older people who are currently entitled to Pension Credit but do not receive it.

“A fundamental, non-negotiable way to help older people’s incomes keep up with the price of essentials is for the government to uprate benefits and the State Pension with inflation. Today was another missed opportunity to offer this reassurance. Instead, millions of people over 65 will continue to live in fear that they will be made even poorer, when their budgets have been broken by the cost-of-living crisis.”

Will Hodson, consumer champion and founder of How To Save It commented: ‘The Chancellor’s announcement that the Government will review the energy price cap in April is welcome. Supporting millionaires in paying their energy bills for two years was both morally and economically wrong.

“However, many households will be concerned about what this change means for them. The Government needs to make sure that their support is both good value to the taxpayer and provides sufficient, targeted support to those who really need it.’

Additional £10 million of UK aid for flood relief efforts in Pakistan

the UK will provide an additional £10 million of life-saving humanitarian support for Pakistan’s flood relief efforts
Lord (Tariq) Ahmad of Wimbledon, UK Minister of State for South Asia (FCDO), arrives in Pakistan today [Friday 14 October]
the Minister will meet with key government counterparts, community leaders, and aid agencies to discuss the response to the humanitarian crisis and long-term recovery for the country

The UK is providing further humanitarian support to Pakistan following the devastating floods that have killed over a thousand people and affected more than 33 million.

As part of a visit to the country, FCDO Minister Lord (Tariq) Ahmad of Wimbledon has today announced a further £10 million of humanitarian aid, bringing the UK Government’s total contribution to £26.5 million.

The extra support will be spent on urgent life-saving needs such as providing shelter, water and sanitation to prevent waterborne diseases. It will focus on supporting people who are still displaced and those that are returning to their land, by helping re-establish communal water supplies.

During his visit to Pakistan, Lord Ahmad will meet the Prime Minister, Foreign Minister and other government counterparts to discuss the impact of the floods, visit the areas most affected and speak with key UK-funded aid agencies on the ground in Sindh.

UK Minister of State for South Asia, FCDO, Lord (Tariq) Ahmad of Wimbledon said: “The UK continues to help the people of Pakistan recover from the recent devastating floods.

“Our support will help to tackle the spread of waterborne diseases and to improve access to clean water, sanitation, medical care and shelter across the country.

“We are working night and day with Pakistan and our international partners to ensure that UK aid reaches the hardest hit areas.

“As well as helping with urgent life-saving needs, the UK is supporting Pakistan’s economic recovery and resilience against future climate disasters.

“The UK’s new Developing Countries Trading Scheme will help grow trade by giving duty-free access to 94% of goods exported from Pakistan to the UK.”

In addition to the UK’s £26.5 million donation in humanitarian funding, a UK Royal Air Force flight recently delivered eight boats and ten portable generators for use in flood relief operations.

As well as discussing the floods, the Minister will also use this visit to raise the need for strong international support for Ukraine following Russia’s illegal annexation of sovereign territory, and reaffirm the strong people-to-people links between the UK and Pakistan in the context of the 75 year anniversary of Pakistan’s independence.

According to Pakistan’s National Disaster Management Agency, the flooding in Pakistan has destroyed or damaged 2 million houses, with 546,000 people now living in relief camps. The disaster has also damaged 12,716 km of roads and 22,000 schools. In total, 745 health centres have been damaged or destroyed
today’s announcement takes the total UK contribution to the floods response to £26.5 million. £21.5 million is going to the relief efforts in the areas worst-hit by the flooding. The remaining £5 million will go directly to the Disasters Emergency Committee Pakistan Floods Appeal, after the UK government match funded pound for pound the first £5 million of DEC donations by the UK public. Further donations can be made at www.dec.org.uk or by calling 0330 678 1000
British Airways and Virgin Atlantic are offering free relief shipments, in their cargo, of any aid goods being sent from the UK to Pakistan
the DEC appeal has notably been supported by the England men’s cricket team, who were touring Pakistan for the T20s last month, with the team making a personal donation which was then matched by the England Cricket Board
the UK pledged over £55 million to partner with Pakistan to fight climate change, manage water more sustainably and unlock climate investment in November 2021 during the COP26 Conference in Glasgow

The Fall Guy: Kwasi Kwarteng sacked

CHANCELLOR Kwasi Kwarteng has been sacked, carrying the can for the ill-judged ‘mini-budget’ which has caused economic turmoil since it was announced three weeks ago today.

‘I’m going nowhere’ Kwarteng, Prime Minister Liz Truss’s choice as Chancellor, was recalled from an IMF meeting in Washington DC this morning to be told the news.

Prime Minister Liz Truss will desperately hope that the departure of close ally Kwarteng will appease the markets. She made the following brief statement confirming a humiliating U-turn this afternoon:

Good afternoon,

My conviction that this country needs to go for growth is rooted in my personal experience.

I know what it’s like to grow up somewhere that isn’t feeling the benefits of growth.

I saw what that meant and I am not prepared to accept that for our country.

I want a country where people can get good jobs, new businesses can set up and families can afford an even better life.

That’s why from day one I’ve been ambitious for growth.

Since the 2008 financial crisis, the potential of this great country has been held back by persistently weak growth.

I want to deliver a low tax, high wage, high growth economy.

It’s what I was elected by my party to do.

That mission remains.

People across this country rightly want stability.

That is why we acted to support businesses and households with their energy costs this winter.

It’s also the case that global economic conditions are worsening due to the continuation of Putin’s appalling war in Ukraine.

And on top of this, debt was amassed helping people through the Covid pandemic.

But it is clear that parts of our mini budget went further and faster than markets were expecting. So the way we are delivering our mission right now has to change.

We need to act now to reassure the markets of our fiscal discipline.

I have therefore decided to keep the increase in corporation tax that was planned by the previous government. This will raise £18 billion per year.

It will act as a down-payment on our full Medium-Term Fiscal Plan which will be accompanied by a forecast from the independent OBR.

We will do whatever is necessary to ensure debt is falling as a share of the economy in the medium term.

We will control the size of the state to ensure that taxpayers’ money is always well spent.

Our public sector will become more efficient to deliver world-class services for the British people.

And spending will grow less rapidly than previously planned.

I met the former Chancellor earlier today. I was incredibly sorry to lose him. He is a great friend and he shares my vision to set this country on the path to growth.

Today I have asked Jeremy Hunt to become the new Chancellor.

He is one of the most experienced and widely respected government ministers and parliamentarians.

And he shares my convictions and ambitions for our country.

He will deliver the Medium-Term Fiscal Plan at the end of this month.

He will see through the support we are providing to help families and businesses including our Energy Price Guarantee that’s protecting people from higher energy bills this winter.

And he will drive our mission to go for growth, including taking forward the supply side reforms that our country needs.

We owe it to the next generation to improve our economic performance to deliver higher wages, new jobs and better public services, and to ease the burden of debt.

I have acted decisively today because my priority is ensuring our country’s economic stability.

As Prime Minister, I will always act in the national interest.

This is always my first consideration.

I want to be honest, this is difficult. But we will get through this storm.

And we will deliver the strong and sustained growth that can transform the prosperity of our country for generations to come.

Kwarteng’s replacement – and the UK’s fourth Chancellor in a tumultuous 2022 – is none other than veteran former health secretary Jeremy Hunt.

Hunt supported Rishi Sunak – who’s predictions on the economy have been proved painfully accurate – in the recent Tory leadership election.

Hunt himself was an early casualty in the recent Tory leadership election and was also once voted as the most unpopular front-line politician of all time!

Clearly another popular choice … what could possibly go wrong?

HM Treasury issued the following statement this evening:

Government update on Corporation Tax

The Prime Minister has set out that the way the government is delivering on its mission to achieve a low tax, high wage, high growth economy is to change.
The legislated increase in the Corporation Tax rate from April 2023 will go ahead, with most small businesses benefitting from the new small profits rate.
Chancellor Jeremy Hunt will deliver the Medium-Term Fiscal Plan on 31 October, detailing action to get debt falling as a percentage of GDP over the medium term.

The government has today [Friday 14 October] announced that Corporation Tax will increase to 25% from April 2023 as already legislated for, raising around £18 billion a year and acting as a down payment on its full Medium-Term Fiscal Plan.

The decision has been taken in recognition of the need to ensure the UK’s economic stability and reassure markets of its commitment to fiscal discipline, after elements of September’s Growth Plan went further and faster than markets were expecting.

The Prime Minister has set out that the government is prepared to do whatever is necessary to ensure debt is falling as a share of the economy in the medium term and to ensure that taxpayers’ money is well spent, putting public finances on a sustainable footing.

The previously announced small profits rate of Corporation Tax will be maintained. Smaller or less profitable businesses will not pay the full 25% rate, and companies with less than £50,000 of profit – the large majority – will not see any increase at all, continuing to pay Corporation Tax at 19%.

The UK’s corporate tax regime will remain competitive and supportive of growth at the 25% rate, continuing to be the lowest rate in the G7. As part of the forthcoming tax review, the government will look at how the tax system can go further to promote growth and investment.

The government is committed to growing the economy and taking forward supply-side reforms that will ignite strong and sustained growth that delivers prosperity for the UK.

Chancellor of the Exchequer Jeremy Hunt will set out the government’s Medium-Term Fiscal Plan on 31 October, alongside a full forecast from the independent Office for Budget Responsibility.