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  • IFS warns ‘massive spending cuts will still be needed’ despite Kwarteng U-turn

IFS warns ‘massive spending cuts will still be needed’ despite Kwarteng U-turn

The Chancellor’s U-turn on his plans to axe the 45p tax rate will do little to ease the pressure on the UK’s public finances and the mammoth spending cuts needed to get borrowing back on track, think tank experts have warned.

by | 3 Oct, 2022

Paul Johnson, director of the Institute for Fiscal Studies (IFS), said the about-turn on Kwasi Kwarteng’s decision to scrap the 45% rate on earnings over £150,000 is the “smallest part” of the mini-budget, representing around £2 billion of the £45 billion in tax cuts.

He warned the move will not prevent the Government from putting the UK’s already creaking public finances on an “unsustainable footing”.

Read more at City A.M.

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