Board members will include Rupert Harrison, who was chief of staff to former chancellor George Osbourne during the 2010-2015 austerity period, and Karen Ward, who advised former chancellor Philip Hammond after Brexit and now works for the investment bank JP Morgan. Announcing the measure in the Commons, the new chancellor said the group would provide “further independent expert advice” to ministers. But the Lib Dems said the committee should be made up of housing and debt charities rather than just asset managers. The panel will also consist of two former members of the Bank of England’s Monetary Policy Committee: Gertjan Vlieghe, who is now chief economist at US hedge fund Element Capital, and Sushil Wadhwani, chief investment officer at asset manager PGIM Wadhwani . Lib Dem Treasury spokeswoman Sarah Olney said: “An advisory board of purely wealthy asset managers in the midst of a cost of living crisis shows just how clueless this Tory government is.” Mr Hunt made the announcement in the Commons just hours after tearing up most of the economic strategy that brought Liz Truss to the premiership just six weeks ago. The Prime Minister was in the room for about half an hour as he spoke, having earlier tabled an urgent question from Labour. Hinting at a possible further twist as he took questions from MPs for two hours, Mr Hunt also said he was “not against the principle” of windfall taxes – something Ms Truss opposed. Answering a question from Lib Dem leader Sir Ed Davey, he said: “I am not against the principle of taxing profits that are really windfalls. “We’ve said nothing is off the table.” In a further departure from Ms Truss’s policies, Mr Hunt failed to commit to spending 3% of GDP on defense – a key promise made by the prime minister during the Conservative leadership race. He also failed to promise that the pension triple lock would remain – a policy that was part of the 2019 Conservative manifesto – and failed to guarantee that benefits would rise in line with inflation. Mr Hunt said he was not making “firm commitments” to individual tax and spending figures. Use Chrome browser for more accessible video player 2:08 Conservative MP Sir Charles Walker said the Prime Minister has “put the country through a huge amount of unnecessary pain” “I’m not making any commitments to individual policy areas, but every decision we make will be made through the lens of what matters most, to the most vulnerable,” he said. Mr Hunt was in the Commons to set out further details of his economic plan, after he reversed “almost all” of his predecessor’s tax cuts and reduced the energy bill freeze package. The changes announced by Mr Hunt include:
No cuts in dividend tax rates Remove the relaxation of IR35 rules for the self-employed introduced in 2017 and 2021 There is no new VAT-free shopping scheme for overseas visitors to the UK No freeze on alcohol duties The basic rate of income tax to remain at 20%, not to be reduced to 19% from April 2023 Energy price guarantee only until April 2023.
He told MPs that growth required “trust and stability”. Tories ‘out of credibility and out of chancellery’ However, shadow chancellor Rachel Reeves warned that “the damage is done” despite the “humiliating reversals”. He said of Mr Hunt: “The fourth in four months of chaos and fiasco as this Conservative Government pulls down the political plug. But the damage is done. “This is a crisis for the Tories in Downing Street, but ordinary working people are paying the price. “The Tories have run out of credibility and are now running out of chancellors.” Ms Truss became prime minister after winning the Tory leadership contest on promises to dramatically cut taxes and upend the status quo at the Treasury. Read more: Seven things you need to know about mini-budget U-turn Hunt is now a powerful backseat driver, MPs believe But Ms Truss and Kwasi Kwarteng’s tax-cutting mini-budget sent shockwaves through financial markets, leading to Mr Kwarteng’s dramatic sacking from the chancellorship and Mr Hunt’s installation in a bid to reassure investors. Truss’ position ‘not supported’ Some Tory MPs are now calling for Mrs Truss to go, with senior Tory MP Sir Charles Walker telling Sky News political editor Beth Rigby: “I think her position is untenable.” But Mr Hunt told Sky News he believed Ms Truss would still be prime minister at Christmas and Tory MPs plotting to oust her should give her a chance.
