The Chancellor’s U-turn on his plans to axe the 45p tax rate will do little to ease the pressure on the UK’s public finances and the mini-budget plans will still help the richest households the most, think tank experts have warned.
Paul Johnson, director of the Institute for Fiscal Studies (IFS), said the cut to the 45% rate on earnings over £150,000 was the “smallest part” of the mini-budget, representing around £2 billion of the £45 billion in tax cuts.
