The UK government’s recent mini-budget has come in for a lot of criticism. Its effect on stock markets, pensions and the value of the pound have barely been out of the news. As a clinical psychologist, one issue I find alarming, but has barely been discussed, is the possible effect this will have on the mental health of the British public. Specifically, I am concerned about the cutting of the top rate of tax, what this will do to income inequality, and what this will do to people’s mental health.
The cut to the rate of basic income tax from 20% to 19% will have a very minimal effect on low and middle earners – saving on average £170 a year for 31 million people. But abolishing the top 45% tax rate for those earning £150,000 or more will see the very wealthy with a lot more cash.
