Chancellor Kwasi Kwarteng has unveiled the biggest package of tax cuts in 50 years, as he hailed a “new era” for the UK economy.
Income tax and stamp duty on home purchase will be cut, and plans to raise business taxes have been scrapped. Kwarteng scrapped previous plans to increase taxes in order to pay for public services with the aim of “boosting economic growth”.
He also revealed a reduction of the top rate income tax from 45% down to 40%. This means the UK will only have one higher rate beginning in April.
The Bankers Bonus Cap, which was in place while the Chancellor was in office, prevented bankers from receiving a bonus exceeding 200% of their basic salaries. Kwarteng said that this did nothing but increase bankers’ base salaries and discourage them from investing in the UK.
The package was generally not well-received in the Commons, with Shadow Chancellor Rachel Reeves saying that it provides “no hope or reassurance” to anyone struggling and Lib Dem’s Sarah Olney saying the current government are “out of touch”.
