Government scrap top rate tax in new mini-budget

Chancellor Kwasi Kwarteng announced to the House of Commons today that the government will abolish the top rate of income tax.

Speaking to MPs on Friday morinng, Mr Kwarteng announced plans to 'abolish' the 45 per cent top rate and replace it with a single top rate of 40 per cent.

Read more: LIVE Kwasi Kwarteng unveils major tax cuts and stamp duty hikes in mini budget - updates

It comes as the government sets in place its plans to drive a 2.5 per cent growth for the British economy. It also sets the standard of the government's emergency response to the soaring cost of living crisis, which the Chancellor said was mainly driven by the high cost of energy resulting from Vladimir Putin's invasion of Ukraine.

Mr Kwarteng, told MPs: “Economic growth isn’t some academic term with no connection to the real world. It means more jobs, higher pay and more money to fund public services, like schools and the NHS.

“This will not happen overnight but the tax cuts and reforms I’ve announced today – the biggest package in generations – send a clear signal that growth is our priority.

“Cuts to stamp duty will get the housing market moving and support first-time buyers to put down roots. New Investment Zones will bring business investment and release land for new homes in communities across the country. And we’re accelerating new road, rail and energy projects by removing restrictions that have slowed down progress for too long.

“We want businesses to invest in the UK, we want the brightest and the best to work here and we want better living standards for everyone.”

The government also claims that, alongside the reversal of the HSCL, cutting Income Tax Basic Rate will mean that someone working full time on the current National Living