The Chancellor’s huge package of personal tax cuts amid a cost-of-living crisis will do nothing to stop more than two million people falling below the poverty line, according to a think tank. Analysis of Kwasi Kwarteng’s fiscal statement by Resolution Foundation said “only the very richest households in Britain” will see their incomes grow as a result of the most significant tax cuts in 50 years.
The richest 5% will see their incomes grow by 2% next year (2023-24), while the other 95% of the population will get poorer as the cost-of-living crisis continues. The package will also see London and the South East “disproportionately” better off than those living in Wales, the North East and Yorkshire. On average, households in London and the South East will gain three times as much (£1,600) as the latter regions (£500).
The think tank added that middle income Britain stands to lose the most overall of all the tax and benefit policies announced. The poorest fifth of households will gain £90 on average, with the middle fifth losing £780, and only the top 5% gaining significantly (£2,520).
