Who benefits from Truss’s tax cuts?

The new Conservative government is poised to go on a tax cutting spree.

Stamp duty and national insurance will be cut, and a planned corporation tax rise is expected to be reversed, in the Chancellor’s mini-budget on Friday.

​These tax cuts are both unfair and unproductive. Reversing the national insurance changes introduced just last year will disproportionately benefit wealthy households – while removing money desperately needed by the NHS and social care.

Cutting stamp duty is unlikely to do anything more than boost house prices.

While all the best evidence suggests cutting corporation tax will do little to nothing to stimulate growth. 

New research from our allies at IPPR shows that despite corporation tax being cut from 30% to 19% since 2007 in the UK, levels of private sector investment have fallen to the lowest among G7 nations.

Handouts for the rich

Our essential public services like the NHS, schools and social care are crying out for more money just to stay open – cutting taxes right now would be reckless to say the least.

If the government is serious about long-term economic growth that works for everyone, they should rethink their approach to tax. This has to include taxing the amassed wealth of the super rich.

Tax is about choices. The new government will make choices on Friday that will affect us all, potentially taking our country down a dangerous path of higher inequality and lower growth. It’s not too late to take a better path.


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