The tax cut measures include the following:
• Canceling a planned rise in corporation taxes to 25%, and instead keeping them at 19%, the lowest rate among G20 nations.
• A reduction in the basic income tax rate from 20 pence to 19 pence.
• Scrapping the 45% tax paid on incomes over £150,000 ($166,770 U.S,), taking the top rate to 40%.
• Significant cuts to taxes paid on home purchases.
• Creating a network of “investment zones” around the country where businesses will be offered tax cuts and a reduction in regulations.
• Eliminating a proposed increase to tax rates on alcohol.
The British government estimates that the tax cuts will total £45 billion by 2026-27. The measures come as a growing number of economists forecast that the United Kingdom will enter a recession by year’s end.
The British currency fell to a fresh 37-year low against the U.S. dollar below $1.107 U.S. shortly after the tax cuts were publicly announced.
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