Chancellor Kwasi Kwarteng has announced a major U-turn for the 45p Income Tax Rate which affects individual’s earning more than £150,000 a year.
The Government’s handling of the UK economy has been criticised following the Mini Budget, which the Chancellor delivered on Friday 23 September 2022.
An eventful 10 days followed the Mini Budget, which led to the pound plummeting to an all-time low and the UK’s Cost of Living Crisis appearing more prominent than ever.
Kwarteng’s message
Announcing plans to ditch the 45p Income Tax Rate cut, Kwarteng said the plans had become a “distraction from our overriding mission to tackle the challenges facing the country”.
Kwarteng says the government’s plans were designed to “build a more prosperous economy” and plans would focus on “delivering the major parts of our growth package”.
He also confirmed, there will be no further tax cuts announced before the official autumn budget which is expected in November 2022.
The pound has since surged against the dollar to pre Mini Budget levels following the U-turn.
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If you have any questions on how the announcements impact on you or your business, please contact us at mail@seavorchartered.co.uk or 01228 904904.
