In an emergency statement, Hunt, who only took on the role on Friday, went further than many had expected. Here’s what the reversal of the mini-budget means for you:
How will consumers’ disposable income be impacted?
The reversing of the 1.25% National Insurance rate is one of the rare elements of the mini-budgets to be retained, which means from 6 November, consumers should have more money in their pockets to spend on holidays ahead of the peak booking season.
However, Hunt has now said the basic rate of income tax will remain at 20%, rather than reducing it to 19% from April 2023 as Kwarteng promised, ultimately meaning customers will no longer receive the boost to income.
At the same time, the scheme to cut all household energy bills for two years will be cut from April, bringing the support to the same level as businesses.
Hunt said the support - which limits a typical household bill to £2,500 – will be reviewed so that it costs "significantly less than planned". He has however, insisted that the most vulnerable will continue to be protected from soaring wholesale energy prices.
The 45% higher rate touted by Kwarteng in his budget had already been reversed.
Personal finance expert Martin Lewis told BBC Radio 5: “Many people in the country are still looking at difficult times in order to balance their personal budgets.”
Nevertheless, despite the gloom currently enshrouding Westminster, trade leaders are remaining pragmatic (but positive too), as Jet2holidays’ head of trade Alan Cross told TTG.
"Politics at the moment – it’s not a negative thing for booking holidays. It’s more about cost of living – will people be able to afford a holiday? How can they get best value for money? Nobody is hesitant because of what’s happening in politics," said Cross.
"I ask the team every week when they’re out and about visiting agents to ask them why people are buying holidays and what the obstacles are. And politics hasn’t cropped up. I think everyone’s just used to the ups and downs of British politics. Agents have no longer got their hands and feet tied, it’s back to business as usual."
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How will inbound tourists be hit?
One measure likely to frustrate the inbound tourism sector is the reversal of plans to reintroduce VAT-free shopping for international visitors.
UKinbound had initially said Kwarteng’s announcement was a “significant win for Britain PLC that will drive growth, provide a boost to high streets across the country, and lay the groundwork for the UK to become an international shopping hub, driving tourism and export earnings into the UK”.
The move announced today was described as a “hammer blow” to UK tourism on the British high street by Paul Barnes, chief executive of the Association of International Retail.
“This short-sighted move is based on inaccurate and incomplete projections, and risks putting a brake on the return of international visitors who are vital drivers of economic growth throughout the UK,” he told the BBC.
How will businesses be affected?
Prime minister Liz Truss had already performed one of her humiliating U-turns over her flagship plan to cut corporation tax. She announced last Friday that she would not, after all, be cancelling the scheduled rise in corporation tax from 19% to 25% next year.
Elsewhere, the government had been set to ease IR35 off-payroll rules, introduced in 2017 and 2021, which would have affected self-employed workers operating through a company from April 2023. Hunt has now repealed this plan, meaning the headache of IR35 for self-employed workers looks set to continue.
What is the impact on currency?
Sterling was up against the dollar following Hunt’s statement, with the pound trading at $1.14. It had initially slumped to a record low of $1.03 after the mini-budget in September with the cost of government borrowing rising sharply in its aftermath. The pound was trading at €1.16.
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