Chancellor sets out plan to stabilise the economy

Jeremy Hunt today set out his plan to stabilise the economy following Liz Truss’ disastrous mini-budget, amid rampant inflation.

The chancellor said his statement had prioritised “stability, growth and public services” but said he had to take “difficult decisions” to tackle inflation.

Below is a list of the key measures affecting housing and planning. 

  • Stamp duty cuts, announced by the Truss government in September, will go ahead as planned but will now be time-limited to 31 March 2025. The threshold will increase from £150,000 to £250,000 and from £300,000 to £425,000 for first time buyers. The maximum purchase price for which First Time Buyers’ Relief can be claimed was increased from £500,000 to £625,000.
  • Investment zones - geographical areas with reduced planning regulation and lower taxes to boost growth announced by the Truss government- will remain but be ‘refocused’ and “centred on universities in left behind areas to help build clusters for..growth”
  • Social housing rent increases will be limited to 7% next year, rather than 5% as originally suggested by the government.
  • Increases in department spending already set out will be maintained but departments will have to make efficiencies to compensate for inflation.
  • The government will no longer focus Liz Truss’ set list of infrastructure projects to accelerate but will ”seek to accelerate delivery of projects across its infrastructure portfolio” 
  • The second round of the Levelling Up Fund will invest a minimum of £1.7bn in local projects across the country.
  • Suffolk will get an elected mayor, with devolution deals for Norfolk, Cornwall and the North East in advanced stages
  • From April next year, the National Living Wage will be increased from £9.50 an hour for over-23s to £10.42.
  • The energy industry will be targeted with an expanded windfall tax of 35%, up from 25%,raising an extra £14bn.