Tax cuts and a huge shake-up to stamp duty were just some of the measures announced by Kwasi Kwarteng in his Mini-Budget this morning.
The new Chancellor has announced the biggest tax cuts in some 50 years - but it will be funded by a sharp rise in borrowing.
In what has been described as “probably the most pro-business budget this century” by analysts, Mr Kwarteng vowed to start a “virtuous cycle of growth” with the aim of kick-starting the economy.
In a statement to the House of Commons, he said: "Growth is not as high as it needs to be, which has made it harder to pay for public services, requiring taxes to rise.
"This cycle of stagnation has led to the tax burden being forecast to reach the highest levels since the late 1940s.
"We are determined to break that cycle. We need a new approach for a new era focused on growth."
But who exactly are the winners and losers of the Mini-Budget? We take a look…
WINNERS
High earners
The Chancellor is abolishing the top higher 45% rate of income tax and will replace it with a single higher rate of 40%.
At the moment, you only pay the top higher 45% rate of income tax when you’re earning over £150,000 - so this move benefits only 1% of workers, who will save £10,000 on average each.
This change does not apply in Scotland, where the top tier higher rate level of tax is 46%.
The reversal of the National Insurance hike - which will see the rate at which you pay contributions drop from 12% to 13.15% - is also more beneficial for high earners.
Workers with an annual salary of £20,000 would save £93 under the policy, while someone earning £80,000 would be £843 better off.
The basic rate of income tax will be cut to 19p in the pound from April 2023 - this is being brought forward from 2024.
It is estimated that 31 million people will be better off by an average of £170 per year.
Businesses
The planned rise in corporation tax - which was due to go up from 19% to 25% next year - is being cancelled.
Corporation tax is paid by UK limited companies and some other organisations. It is based on the annual profits that a company makes.
The move today means businesses will be able to keep more profits in their pockets.
Other measures announced today include the Annual Investment Allowance - which is a tax relief for businesses on plant and technology investment - being frozen at £1million permanently, instead of returning to £200,000 in March 2023.
Talks have also begun with 38 areas to set up “investment zones" where there will be ”generous, targeted and time-limited tax cuts for businesses”.
The Treasury says this “could encourage investment in new shopping centres, restaurants, apartments and offices”.
Bankers
There was a huge boost for millionaire bankers in the Mini-Budget after Mr Kwarteng announced he will scrap a cap on bonuses.
Under rules brought in after the 2008 financial crash, bankers can't get a bonus of more than 200% of their salary.
The Chancellor argued: “All the bonus cap did was push up the basic salaries of bakers or drive activity outside Europe.
“It never capped total remuneration so let’s not sit here and pretend otherwise. We are going to get rid of it.”
Property buyers
Stamp duty will be cut from today, with the threshold for which you start paying to be doubled from £125,000 to £250,000.
The threshold for first-time buyers is to be increased from £300,000 to £425,000, and the value of the property on which first-time buyers can claim relief will rise from £500,000 to £625,000.
This move means house buyers will save thousands of pounds on stamp duty - but experts fear it could also push up house prices.
This could then risk first-time buyers being even more priced out of the property market.
Boozers
There was good news for boozers today as alcohol price hikes due next year were scrapped by the Chancellor.
Accountancy firm Moore UK estimates that this will save thirsty Brits an average of 7p on a pint of beer, 4p on a pint of cider, 38p on a bottle of wine and £1.35 on a bottle of spirits.
LOSERS
Universal Credit claimants
A huge shake-up of the benefits system is set to target 120,000 low-income Universal Credit claimants.
Those on Universal Credit right now are placed in a “light-touch" job search group once they work more than nine hours a week at the National Living Wage.
This is rising to 12 hours from Monday and again to 15 hours in January.
Those working less than these hours risk having their benefits reduced if they do not take steps to increase their earnings and meet regularly with a work coach.
Certain groups will remain exempt from sanctions, including people who are unable to work because of long-term sickness or a disability.
Low income households
Brits who are struggling might be disappointed that no further cost of living measures were announced today.
The last measure of help confirmed by the Government was the Energy Price Guarantee, which will freeze energy prices for the average household by £2,500 for two years.
The Chancellor today confirmed that subsiding energy bills will cost around £60billion over the next six months.
Pension savers
The 1p cut to income tax will spell bad news for pension contributions.
At the moment, you get a "tax relief" top-up based on your "highest marginal" rate of income tax.
The "net" cost to an individual investing £100 in their pension is £80 - as their pension receives a £20 top-up from the tax man.
In future, a 19% income tax rate means you’d need to pay in £81 from your take-home pay to have £100 invested in your pension.
So if you were to continue to pay in £80, your pension will benefit from a slightly lower £98.75.
Taxpayers in Scotland
As we’ve mentioned above, the 1p cut to income tax and the scrapping of the 45% tax rate doesn't apply to taxpayers in Scotland.
