The government has confirmed it is reversing the majority of the tax changes announced in the mini-Budget last month.

In an emergency statement brought forward by two weeks, Chancellor Jeremy Hunt said that “almost all” tax measures announced on 23 September that have not already started the parliamentary process are to be reversed.

The Chancellor has scrapped the plans to cut the basic rate of income tax from 20p to 19p from April next year, saying it is “not right” to borrow to fund this tax cut. The rate will remain indefinitely at 20p until economic circumstances allow it to be cut, he added.

Hunt said the decisions on taxes announced in his statement, which will be further outlined in the House of Commons later today, have been “designed to provide confidence and stability”.

This includes reversals to planned cuts to dividend tax rates, IR35 tax changes, VAT-free shopping for tourists and alcohol duty changes.

However, some changes from the mini-Budget are to still proceed, including the proposed changes to stamp duty, which will still see the stamp duty threshold rise from £125,000 to £250,000, and from £300,000 to £425,000 for first-time buyers.

Hunt became the UK’s fourth Chancellor this year on Friday, following Kwasi Kwarteng’s sacking earlier in the day.

Kwarteng’s mini-Budget, which pledged £45bn of tax cuts, had sparked turmoil across financial markets, causing a spike in mortgage rates and soaring government borrowing costs. It also led to several emergency interventions from the Bank of England.

Hunt is expected to address MPs in the House of Commons at 15.30pm today.

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