On Friday morning, chancellor Kwasi Kwarteng delivered the government's mini-budget to the House of Commons, announcing caps to rising energy bills, lifting the cap on bankers bonuses, and reducing stamp duty for homebuyers as households struggled with the rising cost of living.
Kwarteng's announcement that the top 45% tax band would be abolished was met with mixed reactions, as Tory MPs backed the mini-budget and its contents whilst Labour leaders were quick to criticise the speech. He argued tax cuts are “central to solving the riddle of growth” as he also added restrictions to the welfare system.
Several tax cuts will help out thousands of regular people working across the country too, with a planned decision to cut the basic rate of income tax to 19p in the pound brought forward a year early to April. The Health and Social Care Levy, which raised National Insurance contributions from 12 to 13.5 per cent, is being scrapped, whilst the higher threshold to making payments will remain in place to help boost people's take home income.
