[ad_1]
Income tax will be cut by one penny, Chancellor Kwasi Kwarteng has announced, as part of a raft of measures aimed at boosting economic growth.
The reduction in the basic rate from 20% to 19% will be introduced in April 2023 – one year earlier than planned.
At the same time, the 45% top rate of tax will be abolished with a single higher band of 40%.
Mini-budget – latest updates
The planned increase in corporation tax from 19% to 25% will also be axed, while stamp duty will be cut for homebuyers.
The mini-budget, called the “growth plan” by the government, comes as the UK faces a cost of living crisis, soaring inflation and climbing interest rates.
The chancellor had already confirmed the National Insurance hike introduced by Boris Johnson’s government to pay for social care and tackling the NHS backlog will be reversed on 6 November.
Economists have described the chancellor’s announcement as the “biggest tax-cutting event since 1972”.
It is understood the tax cuts will cost £45bn.
In his Commons statement, the chancellor also announced:
- Duty frozen on beer, wine, cider and spirits
- Caps on bankers’ bonuses will be axed as part of wider City deregulation
- New investment zones will be created with targeted tax cuts and relaxed planning laws
- Plans to speed up major infrastructure projects, including roads, railways and energy projects
- Moves to impose tighter conditions on unions wanting to strike with pay offers put to a vote
The government argues the action being taken will help bolster economic growth and increase the tax to fund public services.
But critics argue the measures are a risk when public debt is already high and the cost of borrowing is rising.
Mr Kwarteng said economic growth was “not as…
[ad_2]
Source : skynews
