UK bosses were left stunned on Monday after the chancellor ripped up almost all of a series of promised “pro-business” tax changes in an attempt to rebalance the government’s finances.
Jeremy Hunt axed proposals around cutting dividends tax, repealing off-payroll working rules, a new VAT-free shopping scheme and a freeze on alcohol duty rates, saving close to £6bn, according to the Treasury.
He had already confirmed on Friday that he would U-turn on a plan to keep corporation tax at 19p next year, rather than letting it increase to 25p — raising up to £19bn annually.
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