The Treasury will impose an extra £21 billion in income tax despite Liz Truss’ “tax cut” mini-budget, detailed analysis published on Thursday revealed.
The average household will be £1,450 a year worse off as a result of the raid, according to the Institute of Fiscal Studies (IFS) think tank.
The typical basic rate taxpayer will pay an extra £500 in income tax and national insurance per year in 2026, while higher rate earners face an annual increase of £3,000.
5 things to start the day
1) Mortgage rates top 6% for first time in 14 years as Kwarteng summons bankers. The chancellor summoned bank chiefs to Downing Street after turmoil in the mortgage market led to a wave of deals.
2) Treasury sets £21bn income tax rise despite budget cuts The average household will be £1,450 poorer a year as a result of the sneak attack, according to the Institute of Fiscal Studies.
3) Ad-free Google rival to launch in UK Neeva founder claims Google is abusing its dominance of internet search engines.
4) Elon Musk’s free speech vision for Twitter at risk from British ‘pursei puritans’ Hate speech campaigners ‘fear for a Musk-owned Twitter’
5) Ben Marlow: Ukrainian heroics are testing the strength of the oil cartel. It has not yet been determined what these major territorial developments mean for OPEC.
What happened during the night
The dollar rose 1% against the euro and 1.3% against sterling overnight. Wall Street’s three main indexes ended in the red, although they managed to recoup most of their earlier losses thanks to a late rally.
Asian markets were mixed as this week’s global rally ran out of juice: Tokyo, Singapore, Seoul, Taipei and Jakarta all rose again, but Hong Kong retreated after rising nearly 6 % Wednesday. Sydney, Wellington and Manila were also slightly lower.
It arrives today
- Economy: Construction PMI (UK), Retail Sales (EU), Jobless Claims (US), Factory Orders (Germany).
- Corporate: Imperial Brands, Chemring, CMC Markets, Ferrexpo, RS Group (trading statements); N Brown (interim); Volution (annual results).