KWASI SLASHES INCOME TAXIN GROWTH GAMBLE

HE ABOLISHES 45P TOP BAND AND TAKES 1p OFF BASIC RATE - BUT POUND TANKS

- Nicholas Cecil, David Bond, Jonathan Prynn and Rachael Burford

KWASI KWARTENG today slashed taxes by £45 billion in a huge gamble to ramp-up growth before the next general election.

The 6ft 5in Chancellor swung his axe at income tax, National Insurance, corporation tax and stamp duty in a historic mini-budget aimed at transforming Britain’s lacklustre growth rate. Most eye-catching was scrapping the top 45p rate of income tax, as well as lopping 1p off the basic rate from next April to reduce it to 19p in the pound, one year earlier than planned, with 31 million people set to benefit from the change.

Unveiling the biggest tax cuts since 1972, he told the Commons: “We are at the beginning of a new era. For too long in this country, we have indulged in a fight over redistribution. Now, we need to focus on growth, not just how we tax and spend. Our duty is to make the UK one of the most competit ive economies in the world.”

But as the Government went on a borrowing and debt splurge to fund the tax-cutting bonanza and deal with the energy bills’ crisis, the pound was plunging mid-morning amid a febrile mood in the markets. Mr Kwarteng, though, pressed ahead, laying out clear battle lines for the next election and:

Reversed April’s National Insurance hike of 1.25 percentage point from November 6. He stressed the tax cut would mean 28 million people across the UK will keep an extra £330 a year, on average, in 2023-24. It would also reduce 920,000 businesses’ tax liabilities by £9,600 on average.