Voicing his opinion through a series of tweets, the financial guru called the changes “a stunning announcement Conservative Party government”.
Under the new leadership of Chancellor Liz Truss Kwasi Kwarteng outlined a series of tax cuts and other economic measures, including a cut in the basic rate of income tax to 19p and the abolition of the 45 per cent top rate of tax for higher earners.
A planned increase in national insurance was also cancelled.
How Martin Lewis reacted to the budget announcement
Mr Lewis, founder of the Money Saving Expert website, commented on a number of announcements made today.
On the abolition of the top rate of income tax, he said: “From next April, the 45% top rate of tax (applicable to those earning £150,000) will be abolished. So the highest bid will be 40% higher than the bid threshold.
“It means mega earners are paying the same price as those on £50,000.”
On steps to simplify the tax system across the board, he welcomed the idea but questioned whether it could be achieved.
“The Department of Taxation Simplification will be abolished, and all officials will be charged with simplified taxes,” he said.
“Simplification of taxation is absolutely desirable. Unfortunately, I doubt whether any party can fulfill it. The rules change and change rather than simplify.”
As for the general statement, Mr Lewis said he was “dismayed” by the government’s apparent desire to distance itself from Boris Johnson’s changes, while at the same time proud of its achievements.
“Isn’t this a new era, distancing ourselves from the administration of the ‘highest taxes since the 1940s?'” he asked.
“Is it to affirm the ‘good’ bits, reject the ‘bad’ ones?”
Other changes in today’s announcement include the stamp duty threshold in England and Northern Ireland being raised to £250,000 or £425,000 for first-time buyers.
In addition, the limit on bonuses to bankers was removed, and the planned increase in corporate tax was also canceled.
https://www.farminglife.com/read-this/martin-lewis-calls-government-mini-budget-a-staggering-statement-kwasi-kwarteng-announces-tax-cuts-3854230 Martin Lewis calls Kwasi Kwarteng’s mini-budget ‘a stunning statement’