Mini Budget 22: Top rate tax cut signals 'ideological change'

Industry views on ‘rabbit pulled out of the government’s hat’

Julia Bahr
clock • 6 min read

In his first Mini Budget speech, chancellor Kwasi Kwarteng unveiled a package of tax cuts, including a cut of the basic rate of income tax from 20% to 19% from April 2023, a year earlier than planned, and scrapping the 45% top rate. Here Julia Bahr gauges industry reaction...

Kwarteng, who was appointed chancellor when Liz Truss took on the mantle of prime minister on 7 September, said cutting tax was crucial to boosting economic growth. Changes to the basic rate of income tax, equating to a reduction in taxation of £5bn a year, would allow workers, savers and pensioners to keep more of their income - with an average gain of £170 in 2023/2024, according to the government. And from April 2023, there will be a single higher rate of income tax of 40%, rather than an additional 45% on annual income above £150,000. Professional Adviser asked advisers and ind...

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