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Liz Truss plans to cut basic rate of income tax from 20p to 19p to put cash back in Brits’ pockets

by Chandler
September 18, 2022
Reading Time: 6min read
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LIZ Truss plans to cut the basic rate of income tax from 20p to 19p to put cash back in Brits’ pockets.

The PM aims to bring forward the move, which had been planned for 2024, as she kicks off her premiership in earnest.

Liz Truss plans to cut basic rate of income tax from 20p to 19p to put cash back in Brits’ pockets
AFP

Prime Minister Liz Truss plans to cut basic rate of income tax from 20p to 19p to put cash back in Brits’ pockets[/caption]

The move would be announced by Chancellor Kwasi Kwarteng at Friday’s mini-Budget but it is unclear from when it would apply.

He will also reverse the 1.25 per cent National Insurance hike which is expected to take effect from November.

Mr Kwarteng, who also plans to lift the cap on bankers’ bonuses to boost the City of London, may have to bend fiscal rules which commit ministers to get debt falling.

But a source said the PM’s quest for growth would trigger a “seismic shift” in policy.

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Senior Tory MP Sir Iain Duncan Smith said: “Liz Truss was elected on a platform of reducing tax cuts, clearly stating you cannot tax your way to growth.

“We’re heading for a really tough winter and now is the time I think she’ll be bold.”

Business Secretary Jacob Rees-Mogg, meanwhile, will announce help for firms facing high energy bills.

Health Secretary Therese Coffey is set to overhaul A&E targets to reduce waiting times.



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