Nursery World - Mini-Budget: reaction to the chancellor's plans

Education unions, sector organisations, and children's charities have been reacting to the Chancellor’s mini-budget, which included the biggest tax cuts since 1972, and which will benefit wealthy taxpayers the most.

Chancellor Kwasi Kwarteng has cut the top rate of income tax for those earning £150,000 or more from 45 per cent to 40 per cent, and the basic rate of income tax from 20 per cent to 19 per cent.

The tax cuts, which will come in from April 2023, will cost the Treasury around £37bn in 2023-24, official figures reveal.

Kwarteng also lifted the cap on bankers’ bonuses, reversed the National Insurance increase, and cancelled the rise to Corporation Tax.

The Institute for Fiscal Studies (IFS) said the net effect on someone earning £1m would be a £40,000-a-year gain.

Speaking to the BBC after the chancellor’s speech in the House of Commons, Paul Johnson, director of the IFS, said, ‘It’s like having an entirely new Government.’

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