Delighted Brits back Kwasi Kwarteng’s key income tax and stamp duty cuts
DELIGHTED Brits overwhelmingly back Kwasi Kwarteng’s key income tax and stamp duty cuts, a poll found.
The big thumbs-up came as the bullish new Chancellor vowed to “prove the naysayers wrong” with his tax-slashing mini Budget.
Shrugging off his critics — and some Tory MPs who consider his plan to be a dangerous bet — Mr Kwarteng said his blueprint will help everyone “not just the wealthy”.
Writing in The Sun on Sunday, he vowed to finally break “the poisonous cycle of high taxes and sluggish growth”.
The defiant Cabinet minister, who delivered the mini Budget on only his 18th day in the job, added: “I’m on a mission to encourage investment and drive growth, even where that means making hard decisions.”
And PM Liz Truss says their radical plan will usher in a “decade of dynamism”.
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In a further boost to small businesses, No10 has widened its start-up loans scheme.
Firms up to three years old — not two — can now apply for up to £25,000 funding.
And new growth loans will be available for companies operating up to five years.
Ms Truss told the Mail on Sunday: “We are now delivering by taking tough choices and doing things differently.
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“We will usher in a decade of dynamism by focusing relentlessly on economic growth.”
On Friday, Mr Kwarteng doled out £45billion of tax cuts in the biggest giveaway budget in 50 years.
In a high-stakes gamble — which saw the pound sink to a 37-year-low against the dollar — he bankrolled the plan with a huge borrowing binge.
A Deltapoll survey for The Sun on Sunday found many of his central policies have gone down a storm.
His pledge to slash the basic rate of income tax from 20p in the £1 to 19p from next April, benefitting 31million workers, got the backing of 63 per cent of respondents.
A majority of Labour and Tory supporters like the plan.
Meanwhile, the decision to ditch stamp duty for first-time buyers on homes worth up to £425,000 was approved by 61 per cent of respondents.
The move to reverse the 1.25 percentage point hike in National Insurance Contributions was liked by 59 per cent of the 1,553 people surveyed.
Some parts of the mini Budget, however, were far less popular. Just 30 per cent of voters backed the decision to scrap the bankers’ bonus cap.
And even fewer — 28 per cent — approved of the move to do away with the 45p top rate of income tax, which will put more cash in the pockets of society’s top earners.
The Resolution Foundation think-tank said those on a salary of £200,000 a year will have £5,220 more to spend.
People on £20,000, however, will get only another £157.
Those living in the South East are the biggest winners and will, on average, pocket £1,670 by next year.
Households in the North East will gain least, at £470.
Writing in this newspaper, Mr Kwarteng denied his mini Budget was a giant giveaway for the wealthy.
Instead, he promised struggling families his plan for growth will put cash back in their pockets.
He added: “I know it’s a tough economic time for many Sun on Sunday readers, but I want to reassure you that with our growth plan everyone wins.
“This is a plan that cuts taxes for all, not just the wealthy. We have got your backs.
“And with this intervention, we will turbocharge the economy, creating more businesses, jobs and raised living standards which will directly benefit every single person.”
Some delighted Tory MPs punched the air in delight after Mr Kwarteng detailed his mini Budget to the Commons.
One senior Tory said: “I am delighted. Finally, we have a proper Thatcherite budget.”
But others warned it was a punt that may cost the Tories the next election.
One minister crossed his fingers as he said: “It is a huge gamble. If we see growth then it will have worked. It’s a roll of the dice.”
One former minister said: “We are basically saying people getting rich is good for the country.
“That is not a platform anyone elected in the past 20 years has stood on.”
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Other critics warned the borrowing spree will mean big spending cuts are ahead.
But Mr Kwarteng’s deputy Chris Philip yesterday hit out at the “politics of envy” he said was behind some criticisms.
Kwasi Kwarteng: with my plan, everyone wins
ON FRIDAY, I set out our tax-cutting Growth Plan. This is the first step towards igniting growth across the UK, with ambitious reforms to boost our economy.
For too long, we haven’t reached our full potential, leading to lower living standards, higher taxes and less money for public services.
This had to change.
We’ve said this is a new era, and that demands a new approach.
There are skilled people and pioneering businesses around the UK who are just waiting for someone to back them to succeed. We look forward to proving the naysayers wrong.
I’m on a mission to encourage investment and drive growth, even where that means making hard decisions.
I want to remove barriers to innovation and investment and let businesses get on with it.
That is the way to create jobs, improve living standards for all and raise the money we need to pay for our valued public services.
And that’s why we are reversing the increase in National Insurance, saving hard-working Brits £330 a year on average.
We are cutting the basic rate of income tax to 19 per cent in April so that 31million people will have an average £170 more in their pocket.
These changes mean someone earning £30,000 will pay £400 less tax next year.
To boost British business, the NI cut will also save almost a million companies nearly £10,000 on average next year — money they can use to hire more, pay more, and grow.
But to do more in this globally competitive race, we are cancelling the planned increase in Corporation Tax and giving more generous tax breaks for business investment.
I want companies to set up shop in the UK, not abroad. There’s good news for pubs and breweries too.
By freezing tax on alcohol, we’re saving people 7p on a pint of beer, 4p on a pint of cider, 38p on a bottle of wine and £1.35 on a bottle of spirits.
And we’re helping more people achieve the dream of home ownership by cutting Stamp Duty so that anyone buying a first home for less than £425,000 won’t have to pay it.
Some people will complain, but I’m not going to apologise for taking decisive action to turn the economy around for the whole UK. With our Growth Plan, everyone benefits.
Remember, these tax cuts come soon after we stepped in to cap energy costs.
Without this action, the average annual energy bill could have reached £6,500 next year.
Thanks to our intervention, bills will be capped at £2,500 for two years.
For extra support for households, people will still get a £400 payment towards energy bills in the autumn, and eight million low-income and vulnerable households are eligible for extra payments to help with the cost of living, saving them at least £2,200 this year overall.
We are helping people face the price rises caused by once-in-a-generation global challenges, at the same time as breaking the poisonous cycle of high taxes and sluggish growth.
This Prime Minister has promised to take a new approach to the economy and prioritise growth to unleash the UK’s potential.
With our Growth Plan, we are delivering on that promise to deliver higher wages, more opportunity and the money to pay for our public services now — and far into the future.
I know it’s a tough economic time for many Sun on Sunday readers.
But I want to reassure you that with our Growth Plan, everyone wins.
This is a plan that cuts taxes for all, not just the wealthy. We have your backs.
And with this intervention, we will turbocharge the economy, creating more businesses, jobs and raised living standards which will directly benefit every single person.