Half of Kwarteng’s cuts to personal tax will go to richest 5%, say experts

The richest tenth of households, who were set to lose about £3,500 a year in 2025-26 would now gain around £700 a year, said the IFS. Photograph: Peter Cziborra/Reuters

Almost half of the personal tax cuts in the mini-budget will go to the richest 5% of the population, according to analysis by leading economic thinktanks.

Highest earners will gain the most from Kwasi Kwarteng’s giveaways after the chancellor cut the top rate of tax for people paid more than £150,000 from 45p to 40p – although big earners in Scotland will not benefit from this.