The Chancellor of the Exchequer announced huge tax cuts that will benefit the richest in society
The UK is heading for the biggest era of borrowing and tax cuts since the 1980s after Tory Chancellor Kwasi Kwarteng slashed corporate and personal tax rates for the very rich.
Controversially he also abolished the 45p top rate of income tax for high earners in England, , replacing it with a 40p rate. Bands and rates for Income tax are usually set by the Scottish government in an annual budget in February, and higher earning Scots already pay proportionately more than equivalent earners in England.
The 1.25 percentage point increase was to pay for social care and dealing with the NHS backlog in England with additional cash coming to the Scottish government. The Tory Chancellor announced, during his statement, a rise in the number of hours a week on the national living wage people will have to work in order to still claim Universal Credit.
According to the latest forecasts the rise was due to take in over £17billion into the economy by 2025. Truss has insisted that she wants lower taxes in order to fuel growth in the economy. Again corporation tax applies across the whole UK.
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