Continuing with his autumn statement, Jeremy Hunt moves on to business taxes.
He says he has decided to retain the employment allowance at its new higher level of £5,000 until 2028.
“This means 40% of all businesses will pay no NICS at all,” he adds, noting that “the VAT threshold is already more than twice as high as the EU average”.
Mr Hunt says he will “make sure multinational corporations, including big tech companies, pay the right tax in the countries they operate”.
He says that reforms to tackle tax avoidance and evasion will raise an additional £2.8bn by 2027-28.
Moving onto the windfall tax, Mr Hunt says he has “no objection” to them if they are “genuinely about windfall profits caused by unexpected increases in energy prices”.
He adds that any such tax “should be temporary”.
“So taking account of this, I’ve decided that from 1 January until 28 March, we will increase the energy profits levy from 25% to 35%,” the chancellor tells MPs.
“The structure of our energy market also creates windfall profits for low carbon electricity generation.
“So from 1 January, we’ve decided to introduce a new temporary 45% levy on electricity generators.
“Together, these measures raise £14bn next year.”
Source: Skynews.com