FAMILIES have today been given a life line as Kwasi Kwarteng swung an axe at income tax to face down the cost of living crisis.
The Chancellor this morning revealed the basic rate of income tax would be slashed to 19p from April next year – saving families an average £170 a year.
Thirty massive money policies were introduced in today's mini budget bonanza that sees £45bn worth of tax cuts to encourage economic growth.
Mr Kwarteng said: "The tax system is not simply about raising revenue for public services, vitally important though that is.
"Tax determines the incentives across our whole economy. And we believe that high taxes reduce incentives to work, they deter investment and they hinder enterprise."
The major income tax announcement is one of just 30 massive money policies revealed in today's mini budget bonanza.
To help keep more money in hard working people's pockets, April’s 1.25 percentage point rise in National Insurance will be binned from November 6 this year.
The cut will save 28 million people an average of £135 this year — and £330 next year.
And to help vulnerable Brits with sky rocketing energy bills, a price cap has been brought in freezing costs at £2,500.
The cap comes in on October 1 and will run for two years.
The first six months will cost the government a whopping £60 billion.
Business energy costs will also be capped but only for six months, for now.
In other Mini Budget developments…
- Stamp Duty was cut to save homebuyers thousands of pounds and get more people on property ladder
- A planned hike in corporation tax was axed
- Boozers were handed a huge boost today as alcohol price hikes were scrapped by the Chancellor
- Duty free shopping will now be available outside of airports for holidaymakers
- Taxes will be slashed for thousands of Brits living in investment zones
The Chancellor said: "The Prime Minister has acted with great speed to announce one of the most significant interventions the British state has ever made.
"People need to know that help is coming. And help is indeed coming."
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To kickstart a homebuying revolution, the Chancellor revealed the threshold for paying stamp duty will shoot up from £125,000 to £250,000 from tonight.
An in a major win for first time buyers, the stamp duty threshold will rise from £300,000 to £425,000.
Mr Kwarteng unleashed a tidal wave of red tape and tax cuts targeted at the business sector.
A planned rise in Corporation Tax from 19 to 25 per cent has also been scrapped in today's mini budget.
The government thinks the move will entice finance firms to London over rivals New York, Paris and Frankfurt.
"That is how we will turn the vicious cycle of stagnation into a virtuous cycle of growth," the Chancellor said.
City fat cats are also in for a major pay day, with the cap on bankers bonuses thrown in the bin.
The cap was introduced by the EU in the aftermath of the 2007-2008 financial crash.
It's joining a smorgasbord of other EU red tape policies being lit up in a post-Brexit bonfire.
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