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23rd Sep 2022

Chancellor slashes taxes for the rich and tells Universal Credit claimants to work more

Jack Peat

‘Hard to imagine a worse response to a cost of living crisis’

The Chancellor has been widely criticised for delivering a mini-budget that is “unashamedly for the rich” after he outlined measures to get Britain through the cost-of-living crisis.

Deploying the much-maligned theory of trickle-down economics, Kwasi Kwarteng abolished the top rate of income tax for the highest earners as he spent tens of billions of pounds in a “gamble” to promote growth.

From April, the 629,000 earners getting more than £150,000 a year will no longer pay the top income tax rate of 45 per cent and will instead pay the 40 per cent applicable to those on over £50,271.

He also axed the cap on bankers’ bonuses and added restrictions to the welfare system, arguing that tax cuts are “central to solving the riddle of growth”.

A whopping 120,000 people on Universal Credit will now have to take active steps to seek more and better-paid work or face having their benefits reduced.

Responding to the announcement, Guardian reporter Pippa Crerar described it as an “unashamed budget for the rich”.

Former Labour leader Jeremy Corbyn and former Shadow Chancellor John McDonnell also made their thoughts known.

While Jo Maugham did some number crunching to find that those earning a million pounds a year will have £54,400 extra in their pockets, while for those earning £25,000, the equivalent figure is about £280.

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