Fresh concern on energy bills and corporation tax in Northern Ireland after Jeremy Hunt reverses almost all 'mini budget' measures

New Chancellor Jeremy Hunt has dramatically scaled back support for household energy bills and ditched tax cuts promised by his predecessor, Kwasi Kwarteng, as he seeks to restore stability following weeks of turmoil on the financial markets.

In an emergency statement on Monday, Mr Hunt said the energy price guarantee – which had been due to cap prices for two years – will end in April after which time the Government will look to target help for those most in need.

He said he is abandoning plans to cut the basic rate of tax by 1p – which had been due to be brought forward to April – and that it would remain at 20p in the pound until the country can afford to reduce it.

The cut in dividend tax promised by his predecessor will also go, along with VAT-free shopping for overseas tourists, the freeze on alcohol duty, and the easing of the IR35 rules for the self-employed.

Mr Hunt said the tax measures alone will bring in £32 billion after economists estimated the Government is facing a £60 billion black hole in the public finances.

The reaction in Northern Ireland has been mixed.

The Stormont Finance Minister, Sinn Fein MLA Conor Murphy, said the decision to scale back support on energy bills is “flawed”.

He added: “It is clear the Chancellor is firmly on the road back to austerity. At a time when public services are under immense pressure the Government should be investing in them not indicating spending cuts.”

Speaking for the DUP, meanwhile, Mr Wilson said: “The United Kingdom needs stability. These are serious matters where families are looking at hard-hitting fuel and energy bills whilst also concerned about interest rates and their borrowing commitments.

“The mini budget last month was flawed and badly communicated. Whilst it had some positive news for struggling working families, it failed to place a proper windfall tax on energy generators who were making bloated profits. Such a windfall tax could have helped pay for some of the commitments being made. It was also a mistake to focus on banker’s bonus changes and cut the 45p tax rate.”

He continued: “Whilst it is welcome that the National Insurance rise will still be reversed, the income tax cut being removed will be difficult news for working families. We will also need to see more detail about how energy supports will be targeted after April 2023.

“The widening corporation tax differential between Northern Ireland and the Republic of Ireland is also a matter of concern. I am particularly concerned at the impact this will have on investment.”

The East Antrim MP added: “If this budget is about economic growth and stability, then one of the sectors most badly affected by a downfall in discretionary expenditure is the hospitality industry. They are rightly pressing for VAT to be reduced to 5% and we support them in this effort as we see more and more small hospitality businesses close their doors.”