Mini-Budget: Kwarteng announces cut to basic rate income tax
Chancellor Kwasi Kwarteng made a series of tax cuts in his mini-budget on Friday, but what do Express.co.uk readers think of the changes? Mr Kwarteng set out a £45billion tax-cutting package in the Commons, which resulted in the pound crashing to its lowest level against the dollar in 37 years. No analysis by the Office for Budget Responsibility has been released alongside the mini-budget which has received a mixed reaction.
In a set of polls that ran from midday on Friday, September 23, to 11am on Saturday, September 24, Express.co.uk asked readers their verdict on major takeaways from the mini-budget.
The Chancellor announced that basic income tax would be cut from 20 percent to 19 percent from April 2023 for people in England, Wales and Northern Ireland earning between £12,571 to £50,270 annually.
He also abolished the higher tax rate of 45 percent for earners over £150,000, with a singular 40 percent rate being used for all higher earners from April next year.
First, Express.co.uk asked readers: “Is it right to cut the basic rate of income tax to 19 percent?”
Here’s your verdict on the mini-budget
Rishi Sunak knew what he was doing when he announced that pensioners would start to pay National Insurance on their earnings from April 2023. Now Chancellor Kwasi Kwarteng and Prime Minister Liz Truss need to unravel his plans because soon it will be too late.
A total of 1,856 people cast their votes with the overwhelming majority, 79 percent (1,460 people) answering “yes”, Mr Kwarteng is right to cut the basic income tax rate. A further 17 percent (317 people) said “no”, and just four percent (79 people) said they were not sure.
Then Express.co.uk asked: “Do you back the 45 percent higher tax rate being abolished?”
Some 1,862 people answered this question with the majority of readers, 59 percent (1,090 people), responding “no” they do not back the higher tax rate being removed. However,, 37 percent (686 people) said “yes”, while five percent (86 people) said they were unsure.
Next, Express.co.uk asked readers: “Do you agree with bankers’ bonus cap being removed?”
Of the 1,864 respondents, some 59 percent (1,094 people) said “no” they did not agree with the removal of the cap. Whereas, 34 percent (635 people) said “yes” they did, and seven percent (135 people) said they were not sure.
Mr Kwarteng also cancelled a rise in corporation tax, saying: “We will have the lowest rate of corporation tax in the G20. This will plough almost £19 billion a year back into the economy.”
A total of 1,856 people responded to the question: “Is it right to cancel corporation tax hike?”
The vast majority of readers, 61 percent (1,134 people) answered “yes”, while 32 percent (598 people) said “no”, and a further seven percent (124 people) said they were unsure.
The Chancellor unveiled changes to income tax
Stamp duty was cut immediately on property sales in England and Northern Ireland. This means the threshold for stamp duty is now £250,000 and £425,000 for first-time buyers.
When asked: “Do you agree with the stamp duty cut?” some 1,861 readers cast their votes. The vast majority, 68 percent (1,268 people) said “yes” they did agree with the changes to stamp duty. Meanwhile, 26 percent (475 people) said “no” and six percent (118 people) were not sure.
Mr Kwarteng also shared the Government’s plans to relax planning regulations by streamlining environmental assessments and removing EU-derived laws.
In response, Express.co.uk asked readers: “Are planning restrictions too rigid?” A total of 1,853 people responded to this question in the survey and readers were divided on the issue.
Some 43 percent (797 people) answered “yes” while 43 percent (794 people) said “no”, while a further 14 percent (262 people) were not sure.
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Stamp duty was cut on property sales in England and Northern Ireland
The Chancellor also introduced new measures to combat strike action, saying: “We will legislate to require unions to put pay offers to a member vote to ensure strikes can only be called once negotiations have genuinely broken down.”
Express.co.uk readers were asked: “Is Mr Kwarteng right to vow to bring in new rules to restrict transport unions?”
A total of 1,858 people responded, with the overall result being “yes”, with 67 percent (1,236 people) of the vote. Meanwhile, 28 percent (528 people) said “no” and five percent (94 people) were unsure.
Finally, Express.co.uk readers were asked: “Is Mr Kwarteng right to bring in VAT-free shopping for overseas visitors?”
Some 1,865 people shared their thoughts on the move to boost the retail sector, with readers divided on the matter. Overall, 47 percent (871 people) said “no” he was not right, while 44 percent (817 people) said “yes” and a further nine percent (177 people) were unsure.
Kwasi Kwarteng set out a £45billion tax-cutting package
Express.co.uk readers also shared their views on the mini-budget with dozens of comments left below the accompanying article.
Many readers were critical of the Chancellor’s announcements, with one, username Taxed to Death, commenting that the measures have “not gone far enough”.
Username Bisnis said: “Not much joy in this budget for the lower paid, should have raised the personal tax allowance to give meaningful help where needed.”
Another, username Stephen West said: “How could he cut the top rate of tax to 40 percent and ignore the low tax threshold…unbelievable!”
And username JohnCh said: “A Budget for Growth, possibly but at enormous cost, and it is one big gamble.”