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Resolution Foundation

@resfoundation

Sep 24

@TorstenBell

The Chancellor has blown the budget, with his £45bn tax cuts package rejecting not just Treasury orthodoxy but also the legacy of Boris Johnson, unveiling a wholly new approach to economic policy - 6-chart summary of the fiscal statement from @TorstenBell resolutionfoundation.org/comment/blowin…

While the Chancellor did not allow the Office for Budget Responsibility to update its forecasts, we estimate that energy support and the weaker economic outlook will increase borrowing by £265 billion over the next five years.

The tax cuts are strongly focused on higher-income households: next year someone earning £200,000 will gain £5,220 a year, rising to £55,220 for a £1 million earner. Those on £20,000 will gain just £157. And almost half the gains will go to the richest 5% of households...

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Resolution Foundation

@resfoundation

Sep 24

NEW Blowing the budget - the RF overnight analysis of the Chancellor's September Fiscal Statement. Here's a short thread of the key highlights ahead of you reading the full 31 page report.... 🧵resolutionfoundation.org/publications/b…

The Chancellor’s huge package of personal tax cuts will disproportionately benefit London and the South East – with households in these regions standing to gain to three times as much on average (£1,600) as those living in Wales, the North East and Yorkshire (£500) next year.

Middle income Britain stands to lose most from the overall impact of all tax and benefit policies announced over the parliament. The poorest fifth of households gain £90 on average, with the middle fifth losing £780, and only the top five per cent gaining significantly (£2,520).

Read 8 tweets

Resolution Foundation

@resfoundation

Sep 23

@FryEmily

Today the Chancellor announced the largest tax cuts in 50 years, driving a £411 billion borrowing surge that will break all fiscal rules. Here's RF's @FryEmily with a summary of what that's going to mean going forwrads... plus a summary 🧵 to follow

Borrowing is expected to increase by £265 billion over the next five years, due to the additional packages of energy support combined with the deterioration of the economic outlook since March. Tax cuts of £146 billion raise that to £411 billion.

The tax cuts confirmed today largely focus on higher income households, driven by the reversal of the rise in National Insurance and scrapping of the 45p rate of income tax. Someone earning £200,000 will gain £5,220 a year, compared to just £157 for someone earning £20,000.

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Resolution Foundation

@resfoundation

Sep 23

Huge tax cuts and a borrowing surge: The Chancellor has opted to boost short term growth and interest rates while setting the public finances on an unsustainable path – here are five key takeaways from today’s #MiniBudget – THREAD

1 - £45 billion of tax cuts were announced today – going far beyond election promises to cancel corporation tax increases and reverse this year’s National Insurance rise.

These are the largest tax cuts to be announced in a single fiscal event since the 1970s.

Read 10 tweets

Resolution Foundation

@resfoundation

Sep 23

Five key takeaways from the #minibudget2022 🧵- Key point 1: £45 billion of tax cuts were announced today – going far beyond election promises to cancel corporation tax increases and reverse this year’s National Insurance rise.

These are the largest tax cuts to be announced in a single fiscal event since the 1970s.

2 - No Chancellor has increased borrowing by so much: The decision to combine the largely unavoidable higher deficit caused by rising energy prices/interest rates with permanent tax cuts will drive up borrowing by £411 billion in coming years.

Read 8 tweets

Resolution Foundation

@resfoundation

Sep 23

Today the Chancellor announced the largest tax cuts in 50 years – the largest in a single fiscal event since Anthony Barber’s ill-fated 1972 Budget – driving a £411 billion borrowing surge that will break all fiscal rules - THREAD 🧵

While extra borrowing is greatest this year (£130 billion) given the scale of energy bill support, the combination of permanent tax cuts, higher interest rates and weaker growth will blow through the previous Chancellor’s fiscal rule on debt falling twice over by 2026-27.

Read 11 tweets

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