Bloomberg Tax
Sept. 23, 2022, 11:51 AM

UK’s Biggest Tax Cuts Since 1972 Prompt Crash for Pound, Bonds

Philip Aldrick
Philip Aldrick
Bloomberg News

Liz Truss’s government has set out the most radical package of tax cuts for Britain since 1972, reducing levies on both households and companies in an effort to boost the long-term potential of the economy.

The pound and UK government bonds fell after Chancellor of the Exchequer Kwasi Kwarteng scrapped the 45% the top rate of income tax, paid by only the richest earners, and cut the basic rate from 20% to 19%.

The Conservative administration hopes its program including regulatory reforms will turbo-charge the economy, staving off a recession that the Bank of England says has already ...