The Mayor of London Sadiq Khan has revealed today that the Chancellor of the Exchequer’s plans to cut Income Tax and abolish the social care levy would disproportionately benefit the most wealthy in society.
Sadiq has highlighted new analysis from GLA Economics that reveals that those earning the least would not benefit at all from changes to personal taxation that the Chancellor is expected to set out in tomorrow’s Fiscal Statement.
The findings, show that abolishing the social care levy, and introducing a 1p cut in income tax would lead those earning £150,000 taking home an additional £1,950 a year.
An employee with low earnings of approximately £11,000 a year, would gain nothing from these changes.
The Mayor revealed this new analysis as he called on the Chancellor of the Exchequer, Kwasi Kwarteng to deliver a Fiscal Statement that will hone in on supporting the least well off in society during the cost of living crisis.
The Mayor of London, Sadiq Khan, said, “Tomorrow’s Fiscal Statement is a chance for the Government to introduce a package of measures that will make a tangible difference to millions of Londoners struggling to make ends meet during this cost of living crisis.
“Rather than focussing on unfunded tax giveaways for the most wealthy, we need to see immediate and comprehensive help for those who need support the most.
“The Chancellor should provide free school meals to all primary school children, uplift Universal Credit in line with inflation and introduce a Lifeline Tariff to ensure that the most vulnerable members of our society receive a basic amount of free energy every day. The Government should also give me the power to freeze private rents in the capital, which would save people £3,000 over two years.”
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