Kwasi Kwarteng mulls more beneficial tax cuts for high earners
The government is considering a series of further tax cuts that could hand thousands of pounds to high earners, shortly after it announced the biggest giveaway in 50 years.
Plans under consideration could include bringing back a tax-free allowance for workers paid more than £100,000 a year, and lifting the amount pensioners can save before taxes kick in, the Sunday Telegraph reported.
The chancellor, Kwasi Kwarteng, on Friday delivered a mini-budget with tax cuts that will benefit many of the highest earners in the UK. Although it was not a full budget, it represented the biggest tax-cutting fiscal event since 1972 under another Conservative chancellor, Anthony Barber.
As part of the mini-budget, Kwarteng announced a review aimed at producing a “more pro-growth tax system” that would also be simpler. On Sunday, he appeared to signal that further tax cuts were under consideration, despite a hostile financial market reaction that suggested investors have concerns about the sustainability of UK government finances. On Friday, the pound slumped 3.5% to below $1.09, a 37-year low, and government borrowing costs increased markedly.
Kwarteng told BBC One’s Sunday with Laura Kuenssberg programme that there was “more to come” from the new government. “We have only been here for 19 days. I want to see, over the next year, people retain more of their money,” he said.
Plans under consideration could include removing “pinch points” where people face higher marginal tax rates on extra earnings, the Sunday Telegraph reported.
One such policy could be reinstating the income tax personal allowance for workers paid more than £100,000 – a move that would hand about £5,000 to high earners. People paid between £100,000 and £125,000 pay a marginal
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