Tom Evennett, EY Head of Private Client, comments: “Over the last two days the Chancellor has delivered £22bn of tax and social security cuts for 2023/24. Yesterday we heard about the reduction in the increase in National Insurance Contributions from 6 November and the cancellation of the Health and Social Care Levy from April 2023. Today the Chancellor went further with the announcement of the largest cuts in income tax rates for a generation, including the abolition of the additional 45p tax rate, as well as a 1p cut in the basic rate and the removal of the additional dividend tax increase of 1.25p.
“The Chancellor’s aim with these announcements is to leave more money in people’s pockets with the intention of driving economic growth. This could be considered the start of a new era - with the Chancellor hoping it is a golden one – but only time will tell as to whether these measures do drive the growth the Government is hoping for.”