Home World 7 Key Takeaways from Kwasi Kwarteng's Big 'Mini Budget' TT News

7 Key Takeaways from Kwasi Kwarteng’s Big ‘Mini Budget’ TT News

TT News

Kwasi Kwarteng has unveiled a series of tax cut measures, as he says the Conservative government, which has been in power since 2010, is ushering in a “new era”.

- Advertisement -

The statement was not technically a full budget, instead it was called a financial event or mini-budget. But it was away From mini

Here are the Chancellor’s key announcements:

- Advertisement -

Income tax cuts for the richest

The top rate of tax will be cut for the highest earners, with a 45% rate on earnings over £150,000. Instead the top rate is 40% which applies to earnings over £50,271.

- Advertisement -

This will benefit 629,000 earners on higher wages – saving them an average of £10,000 a year.

National Insurance increased

The increase in National Insurance will be withdrawn from November 6.

The 1.25 percentage point rise in tax – which only came into effect in April – was announced by former chancellor Rishi Sunak to help fund health and social care.

But according to the Institute for Fiscal Studies, the tax cuts would only benefit the poorest by 63p a month. By contrast, the respected think-tank said the move would cost higher earners around £150 a month.

Current Income Tax Rates – The top rate will be abolished

The rate of basic income tax should be cut soon

Boris Johnson – when Prime Minister – promised to cut the basic rate of income tax from 20p to 19p in the pound before the end of this parliament in 2024.

Kwarteng announced today that it will happen a year earlier, in April 2023. He said this would mean tax cuts for more than 31 million people.

Corporation tax has been increased

Plans to raise corporation tax to 25% will be scrapped. It will remain at 19% – meaning businesses will pay less tax than they expected.

Bankers bonus cap cut

In the wake of the 2008 financial crisis, bankers’ bonuses were capped at twice a banker’s salary. It will be dismissed. Kwarteng argued that the entire bonus cap was to “increase the basic salaries of bankers, or drive activity out of Europe”.

Reduction in stamp duty

The level at which home-buyers start paying stamp duty has doubled from £125,000 to £250,000. First time buyers currently pay no stamp duty on the first £300,000 and this threshold has been raised to £425,000.

strikes

The country has faced strikes in recent months – with more expected – amid disputes over low pay amid a cost of living crisis.

Kwarteng said the strike action “disrupting” life was “unacceptable” and hinted that a crackdown was coming. Under his plans unions would have to offer any pay to a member vote “to ensure that strikes can only be called when negotiations have truly broken down”.

.
TT News

RELATED ARTICLES
TT News The actress portrays Carr in the upcoming Channel 5 drama about the Soham murders TT News
TT News Warning: This story contains some graphic details.The trial against former Kitchener neurologist Jeffrey Sloka, which began last September, is underway at the...
TT News John Plunkett. Updated on October 5, 2022 If you haven't seen Liz Truss's first Tory party conference speech as Prime Minister...
TT News Cancer patients in the region will soon have access to state-of-the-art scanning technology as London Health Sciences Center (LHSC) starts operating its...
TT News To mark UNESCO's International Geodiversity Day on October 6, a leading expert has come up with a bold new theory. TT News
TT News The Windsor-Essex Vital Signs 2022 report is out and it reveals that residents feel we are doing "okay" when it comes to...
TT News Police are urging the public to be vigilant after recovering a "large quantity" of...
TT News A group of protesters concerned about declining service levels in Sudbury's outlying communities marched outside Tom Davies Square on Tuesday.With less than...
ads

Most Popular

TT News Updates, "Does DMK's voice for Tamil rights get heard in Parliament?" asked AIADMK Interim General Secretary Edappadi Palaniswami. At the Salem Highway residence...
TT News Updates, Is the drug real or fake: Is the drug you are taking real or fake? Is it harmful to your...
TT News Updates, VMC spent Rs 65 crore for the sports complexRs. The diving pool built at a cost of 65 crores in...
TT News Updates, Davangere District 4: Santhosh Naik of Kabala village in Channagiri taluka who was elected District...
TT News Updates, New Delhi. Maharashtra Chief Minister Eknath Shinde and former Chief Minister Uddhav Thackeray criticized each other in a special Dussehra meeting...
TezabiTotay An Indian Army helicopter crashed in the Indian state of Arunachal Pradesh, resulting in the death of one pilot and injuring another. According...
TT News After the completion of the T20 series between India and South Africa, both teams will play in the 50 over format. ...
TT News The actress portrays Carr in the upcoming Channel 5 drama about the Soham murders TT News
TT News Warning: This story contains some graphic details.The trial against former Kitchener neurologist Jeffrey Sloka, which began last September, is underway at the...
TT News Updates, Heavy rain will occur in 14 districts of Tamil Nadu today and tomorrow, said the Meteorological Department. Also, heavy rain...
TT News Updates, 10/06/2022 Around 45 Indians trapped in a fake job racket in Thailand-Myanmar have been rescued. External Affairs...