Kwarteng scraps higher income tax for top earners and accelerates 1p discount for everyone

0
5

The 45 pence income tax rate paid by Britain’s top earners will be abolished, as the biggest surprise in Kwasi Kwarteng’s mini-budget.

The Chancellor also accelerated a planned 1p cut in the base rate – from 20p to 19p – now taking effect in April.

Mr Kwarteng claimed that the abolition of the 45 pence rate, which had already been cut from 50 pence by George Osborne a decade ago, “will simplify the tax system and make Britain more competitive”.

ALSO READ  Autopsy Says Texas Mother Found Dead in Parking Lot Overheated After Drinking

However, the move will fuel criticism that the mini-budget rewards the rich at the expense of the less fortunate – in what has been called a return to 1980s-style trickle-down economics.

The chancellor also confirmed that he is lifting the cap on bankers’ bonuses, while reversing the increase in National Insurance premiums will also overwhelmingly benefit the wealthy.

Labour’s shadow chancellor Rachel Reeves protested that it was “not a plan for growth”, but “a plan to reward the already rich”.

ALSO READ  Lawsuit Demands San Francisco Stop Clearing Homeless Camps

The pound plunged to a new 37-year low against the dollar when the ‘growth plan’ was unveiled, following a sharp rise in public borrowing costs amid market jitters.

The pound plunged to a new 37-year low against the dollar when the ‘growth plan’ was unveiled, following a sharp rise in public borrowing costs amid market jitters.

LEAVE A REPLY

Please enter your comment!
Please enter your name here