Britain’s rich to enjoy lion’s share of £45bn tax cuts announced by Kwasi Kwarteng

Liz Truss and her chancellor Kwasi Kwarteng were accused of producing a “Robin Hood in reverse” economic plan helping the “already wealthy” after announcing a raft of tax cuts

which benefit the rich the most. Treasury estimates put the cost of tax cuts – including the abolition of the top rate of income tax for the highest earners – at nearly

£45bn a year in 2026. The richest 5 per cent would enjoy almost half of all the gains, experts said. High earners getting more than £150,000 a year will no longer pay the

top income tax rate of 45 per cent and will instead pay the 40 per cent rate paid by those earning over £50,000. It means those earning over £150,000 will enjoy an average

tax cut worth £10,000 a year, according to Treasury officials. The government loses out on more than £2bn a year from the plans to cut tax for the 629,000 people in the top tax

bracket. Labour’s shadow chancellor Rachel Reeves said the government had “decided to replace levelling up with trickle down” – accusing Ms Truss of subscribing to “an

ideology that says if we simply reward those who are already wealthy, the whole of society will benefit”. SNP leader and Scotland’s first minister Nicola Sturgeon said the

super-rich will be “laughing all the way to the actual bank” after the chancellor unveiled his tax-cutting plans – accusing the Tory government of “moral

bankruptcy”. Business groups gave a cautious welcome to the chancellor’s statement. But the markets reacted badly, as the pound fell to a new 37-year low, and unions were

scathing – calling it “Robin Hood in reverse”.