Chancellor of the Exchequer Kwasi Kwarteng leaves 11 Downing Street (Aaron Chown/PA)
(Picture: PA Wire)The Chancellor today announced the biggest tax cuts since 1972, making sweeping changes to income tax, National Insurance, corporation tax and stamp duty.
Hundreds of thousands of Britain’s wealthiest, earning more than £150,000, are expected to benefit from the higher income tax rate being abolished, on average by £10,000.
Kwarteng told the Commons: “We are at the beginning of a new era. For too long in this country, we have indulged in a fight over redistribution. Now, we need to focus on growth, not just how we tax and spend. Our duty is to make the UK one of the most competitive economies in the world.”
Shadow Chancellor Rachel Reeves said the stamp duty cuts will benefit those purchasing second homes or buy-to-let properties, as well as letting off energy companies.
“Instead of standing up for working people, the Conservatives chose to shield the gigantic windfall profits of the energy giants leaving tens of billions of pounds on the table and pushing all the costs onto borrowing to be paid for by current and future taxpayers,” she said.
Reeves also pointed the finger at Liz Truss for “nodding along” with the Conservatives’ economic policies over the past decade, and said the Prime Minister and Chancellor are acting like “two desperate gamblers in a casino”.
Money Saving Expert founder Martin Lewis said “huge new borrowing at the same time as cutting taxes” was a “staggering” announcement from a Tory government.
“It’s all aimed at growing the economy. I really hope it works. I really worry what happens if it doesn’t,” he tweeted.
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