Chancellor-Additional Rate Threshold Cut By Nearly GBP25k

Chancellor of the Exchequer Jeremy Hunt: "Anyone who says there are easy answers is not being straight with the British people: some argue for spending cuts, but that would not be compatible with high quality public services."

• "Others say savings should be found by increasing taxes but Conservatives know that high tax economies damage enterprise and erode freedom. We want low taxes and sound money.[...] So, with just under half of the £55bn consolidation coming from tax, and just over half from spending, this is a balanced plan for stability."
• "...we ask those with more to contribute more; and secondly, we avoid the tax rises that most damage growth. Although my decisions today do lead to a substantial tax increase, we have not raised headline rates of taxation, and tax as a percentage of GDP will increase by just 1% over the next five years."
• "the first difficult decision I take on tax is to reduce the threshold at which the 45p rate becomes payable from £150,000 to £125,140. Those earning £150,000 or more will pay just over £1200 more a year."
• "I am maintaining at current levels the income tax personal allowance, higher rate threshold, main national insurance thresholds and the inheritance tax thresholds for a further two years taking us to April 2028. "
• "The dividend allowance will be cut from £2,000 to £1,000 next year and then to £500 from April 2024. The Annual Exempt Amount for capital gains tax will be cut from £12,300 to £6,000 next year and then to £3,000 from April 2024. "