What is the summary of UK mini-Budget 2022? Details here

Chancellor of the Exchequer in UK Kwasi Kwarteng announced the mini-budget today, focusing on tax-cutting. The Chancellor promises a new British era after Tory’s 12-year rule. Kwartend announced tax cuts worth £45billion and will help the more affluent sections of society. Experts believe the mini-budget could lead to a debt-borrowing spiral. It includes cutting Stamp Duty, Income Tax, and 45p Income Tax paid by the wealthiest 660,000 Brits. Officials in the Treasury suggest the richest could benefit by up to £10,000 annually. The mini-budget has been designed to maintain 2.5 percent growth annually.

However, the Chancellor did not mention how he plans to achieve it.

What changed?

The tax cuts announced today will result in a £45billion hole in finances for the public by 2026-2027. From April 2023, Income Tax basic rate will reduce to 19p from 20 on earnings above £12,570. It will be the first in 15 years. The additional rate of 45p on the richest has been completely abolished.

Now, the richest would have to pay 40p on each pound one earns above £150,000 annually. There are 660,000 richest people in Britain who will benefit. The Treasury will lose £2bn annually starting from year 1.

FAQ
What is the change in the wealthiest income tax slabs?

  1. The additional rate of 45p on the richest has been completely abolished. Now, the richest would have to pay 40p on each pound one earns above £150,000 annually. There are 660,000 richest people in Britain who will benefit.
  2. What is the aim behind the mini-budget?
    The mini-budget has been designed to maintain 2.5 percent growth annually. However, the Chancellor did not mention how he plans to achieve it.

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