Chancellor reverses two-thirds of mini-Budget tax cuts Chancellor Jeremy Hunt has announced that the Government will reverse "almost all" of the tax cuts set out in last month's controversial mini-Budget. He said the measure, which aims to calm investors and steady markets, would bring in £32bn by 2026/27 and restore "economic stability." Mr Hunt announced that the savings will be made by keeping plans to raise corporation tax to 25%, keeping the basic rate of income tax at 20p, rather than cutting it to 19p next year, keeping a planned increase to the tax on dividends, scrapping changes to IR35 rules for freelance workers, cancelling plans to offer tax-free shopping to tourists, and allowing alcohol duties to rise instead of being frozen. The Chancellor also announced that support for household energy bills will remain in place until April, when a review of the scheme will look to see if cost savings can be made. Some elements of the mini-Budget did survive, however, with National Insurance and stamp duty both reduced. Outlining the need for the U-turn on the mini-Budget, economists had warned that the original plans announced by Mr Hunt’s predecessor, Kwasi Kwarteng, would have left a black hole in the public finances. The Institute for Fiscal Studies think-tank calculated that the Government would have to spend £60bn a year less by 2026/27, even taking into account an earlier U-turn over the top rate of income tax.