In the wake of the crisis, the UK announces big tax cuts

The new government of Liz Truss in the UK has unveiled the biggest package of tax cuts in half a century to stimulate the economy.

After presenting his mini-budget in the Commons on Sept. 23, Chancellor Kwasi Kwarteng announced that both corporation tax and national insurance contributions would be cut.

The government increased borrowing by more than £70 billion ($77 billion) and abolished the top rate of income tax for the highest earners. It was also planned that stamp duty for homebuyers would be reduced, and the basic rate of income tax would be reduced to 19 pence a year early to April.

An announcement on the package came just a day after the Bank of England warned the UK was already in recession and raised interest rates to 2.25 percent.

According to the chancellor, his economic vision will "transform vicious cycles of stagnation into virtuous cycles of growth."

23 September 2022