Chancellor, Kwasi Kwarteng, had today announced a new package of tax cuts which are worth over £45 Billion, all in his plan to boost economic growth in the U.K.
Mr Kwarteng has scrapped plans to push up taxes to pay for public services, intending to boost economic growth.
In a Commons statement, with the plan being called a 'mini-budget', he claimed that high tax rates "damage Britain's competitiveness", therefore reducing the incentive to work here and for businesses to invest in the country.
Not only did he scrap the 45% additional rate of income tax, but he axed the planned increases to corporation tax, cut national insurance from November 6th, and also announced a plan to permanently cut stamp duty fees. He also confirmed that energy bills will be frozen at £2,500.
Mr Kwarteng says that the top rate of income tax which is a 45% rate for earnings over £150,000 – is going to be abolished altogether
He claimed that the opposing party, Labour, never had a 45% rate of income tax when they were last in power. And he says the government will be due to cut income tax by 1 penny in the pound from April 2023. Which makes the plan come one year earlier than initially organised, and it will be taking the rate down to 19%. He further said:
"This means that we will have one of the most competitive and progressive income tax systems in the world."
Mr Kwarteng has also lifted a limit on bankers' bonuses.In concern to stamp duty, he has raised the threshold which people in England and Northern Ireland will have to pay stamp duty on home purchases, for first-time buyers it will rise to £425,000 from £250,000 and the value of the property from which they can claim relief is due to increase from £500,000 to £625,000.Under the previous plans, there were increased duty rates planned for beer, cider, wine and also spirits; but Mr Kwarteng has axed these.He ended his presentation with "We need a new approach for a new era, focused on growth"
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