Ian Blackford has accused Liz Truss of "ignoring the damage and the chaos" of her mini-budget that plunged the markets into turmoil due to her unfunded tax cuts.
23.09.2022 - 12:41 / dailyrecord.co.uk
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.
In a drastic, right-wing strategy to get the economy moving, the chancellor announced he would bring in a estimated £50 billion of tax cuts, mostly funded by borrowing.
Some of the staggering measures, like a reduction in income tax rates and in stamp duty paid on house sales, do not affect Scots directly because these are set separately in Holyrood.
But the so-called mini-budget presented to the Commons on Friday morning, which brings benefits mainly to the wealthy and big companies, will affect the economy in Scotland and how much Scots have in their pockets.
Here's the policies at a glance:
The chancellor brought forward the planned 1p cut in the basic rate of income tax that was due to be introduced in 2024, making good on Liz Truss's leadership campaign promise.
Controversially he also abolished the 45p top rate of income tax for high earners in England, , replacing it with a 40p rate.
Importantly, the cut to the basic rate, and the adjustment to the levels at which taxes are paid, do not affect Scottish tax payers directly.
The top rate in Scotland for earnings over £150,000 is 46 per cent and 41 per cent for earnings over £43,633.
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.
Kwarteng 's tax cutting agenda will put pressure on SNP Finance Secretary John Swinney to match the cut or move further away from the rest of the UK.
Announcing a tax cut immediately increases speculation about Truss
Ian Blackford has accused Liz Truss of "ignoring the damage and the chaos" of her mini-budget that plunged the markets into turmoil due to her unfunded tax cuts.
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HBO series Succession.On Monday (October 3), the Chancellor of the Exchequer said in a statement that “we get it and we have listened”, as he announced plans to scrap a controversial tax cut for those earning over £150,000 a year.His statement, however, was soon mocked on social media, with many comparing it to a speech given by Sarah Snook’s character Shiv Roy in Succession.In a season three episode of the hit show, Shiv used the phrase “we get it” while addressing Waystar Royco employees about a series of scandals that had hit the company.“As a #Succession obsessive, I’m really enjoying the tories leading with “We get it” on the 45p tax rate climb down. Is @lucyprebblish writing the script for our government now?” wrote one person.Another joked: “Does the UK government have the same PR advisers as Waystar Royco?”“Wasn’t ‘we get it’ literally the slogan Waystar went with in Succession after it came out that they’d done a bunch of shady things? And then ‘we hear you’ after their version of Siri was spying on people?” added another.As a #Succession obsessive, I'm really enjoying the tories leading with "We get it" on the 45p tax rate climb down.
Prime Minister Liz Truss has defended her Government’s disastrous mini budget that nearly tanked the UK economy.
The Work and Pensions Committee has pressed Chancellor Kwasi Kwarteng to honour the commitment made by the former Chancellor, Rishi Sunak, to uprate benefits in April 2023 in line with the September 2022 Consumer Price Index (CPI) rate.
Nicola Sturgeon has accused the Conservatives of "utter ineptitude" after the UK Government announced it would no longer cut the top rate of income tax for millionaires.
Prime Minister Liz Truss admitted that it will be a “difficult winter” for the UK hours before the new energy price cap came into force from today (Saturday, October 1). But she defended the mini-budget revealed earlier this week despite the “disruption” the plans caused.
The Scottish Government has asked for an urgent meeting with the Chancellor to discuss "reversing the damaging effects of the UK Government's tax proposals".
Alister Jack has claimed the biggest tax cuts in the United Kingdom since 1972, funded by £72 billion a year in borrowing, are "small".
The Scottish Conservatives have been accused of "hypocrisy" for supporting Liz Truss's tax cuts for the wealthy, despite several MSPs refusing to vote for her as leader. A group of prominent Tories endorsed Rishi Sunak's leadership campaign - which promised a focus on tackling inflation - before quickly embracing the new Prime Minister after the former Chancellor lost earlier this month.
The pound has fallen to a record low on international currency markets after Kwasi Kwarteng, announced the UK’s biggest tax cuts in 50 years last Friday.
Tory tax cuts for the richest have left the UK's public finances in "a very dangerous place", John Swinney has warned.
The British pound fell to an all-time low against the dollar as markets reacted to the UK’s biggest tax cuts in 50 years.
Prime Minister Liz Truss has defended her Government's controversial tax cuts as she vowed to 'usher in a decade of dynamism'. Truss has come under fire from Labour who accused the Prime Minister and Chancellor Kwasi Kwarteng of gambling with people’s finances in 'casino economics', and claimed their 'trickle-down' approach will leave the next generation worse off.
The UK Government has a new prime minister in Liz Truss and a new Chancellor in Kwasi Kwarteng.
Chancellor Kwasi Kwarteng has this morning confirmed the increase to National Insurance contributions that came into effect earlier this year will be reversed from November 6.