Basic rate of income tax to be cut and top rate of income tax scrapped

Chancellor Kwasi Kwarteng today said the basic rate of income tax is to be cut to 19p while the top rate of income tax scrapped”

“I can announce today that we will cut the basic rate of income tax to 19p in April 2023 – one year early,” says Kwarteng. “That means a tax cut for over 31m people in just a few months’ time. That means we will have one of the most competitive and pro-growth income tax systems in the world.”

The chancellor is also abolishing the top rate of income tax – a major benefit for the highest earners in the country.

The highest rate of income tax is currently 45% and paid by those earning over £150,000.

“From April 2023 we will have a single higher rate of income tax of 40%. This will simplify the tax system and make Britain more competitive,” said Kwarteng.

“It will reward enterprise and work. It will incentivise growth. It will benefit the whole economy and the whole country.

“And, Mr Speaker, after all, this only returns us to the same top rate we had for 20 years – including the entire time the opposition was last in power – bar one month.”