In total, the measures announced will amount to £27bn in tax cuts over the next financial year before rising to around £45bn by 2026-27. That’s a huge reach because these tax cuts are the biggest since 1972.
The budget also massively benefits the UK’s wealthiest, as the planned rise in corporation tax has been scrapped and bankers’ bonuses will not be capped. Add to that the fact that those earning millions will also pay the same rate of income tax as those earning £50,000, it’s a massive break with tradition for the Tories.
There’s also this 1% tax cut for the lower to middle class, but again saving 1% on £30,000 income isn’t really the same as saving 5% on £150,000 and not anymore, right? But if anything else, it highlights what the government is really focused on here and that is to really strengthen the conditions for growth – whatever the cost (which in this case is 161 billion sterling over 5 years).
UK bond yields see a massive jump, with 2-year gilt yields up more than 30 basis points to 3.86% – its biggest daily jump since November 2009:
I think this meme captures the sentiment in UK financial circles very well at the moment: