Kwasi Kwarteng has vowed to double down on his controversial tax-cutting drive despite the sell-off after Friday’s mini-budget.
| UK Chancellor Kwasi Kwarteng has pledged further tax cuts in his pursuit of growth after unveiling the biggest fiscal giveaway in half a century, leaving investors braced forMr Kwarteng’s package on Friday scrapped the top level of income tax and cut the basic rate by a percentage point, while also reversing a rise in the National Insurance payroll tax brought in earlier this year.
The Treasury put the cost of Friday’s fiscal announcements at some £161 billion over the next five years, in addition to the £60 billion price tag on the government’s energy bailout for households and businesses over the next 6 months. That prompted investor concerns that the approach will stoke already-soaring inflation further and send debt ballooning.
Mr Starmer told the BBC he would reverse the Chancellor’s abolition of the 45 per cent top level of income tax, levied on those earning more than £150,000, but retain the 1-percentage point reduction in the basic rate.
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