The NUS VP for Higher Education, Chloe Field, has accused the UK government of “ignoring students” in last week’s mini-budget.
The Chancellor, Kwasi Kwarteng, called the mini-budget “biggest package in generations” as he announced the government would be scrapping the 45% income tax rate and making cuts to stamp duty, in his speech to the House of Commons last week.
Mini-Budget key facts
The main point to come away from the mini-budget was the income rate tax cuts – from April 2023 a person earning over £150,000, the highest earners in the UK, will only pay 40% tax as the 45% income tax rate will be scrapped.
The 40% higher rate, charged on incomes above £50,271, will remain, but the basic income tax rate of 20% for anyone earning between £12,571 and £50,270 – some of the lowest earners in the UK – will have a one per cent cut from 2023.
The chancellor said this is to focus on economic growth and “we won’t apologise” for that. He said: ‘For too long in this country, we have indulged in a fight over redistribution. Now, we need to focus on growth, not just how we tax and spend.’
Stamp duty was also cut from the day of the announcement, the Chancellor explained amp duty on the first £250,000 of a property (doubled from £125,000).
The cap on bankers’ bonuses was also lifted and next year’s increase in corporation tax from 19% to 25% will be cancelled and will remain at 19%.
Other factors that came out in the budget were:
- Universal credit rules are changing for those on low incomes. From next year, more than 100,000 people claiming universal credit will be asked to “take active steps” to increase the hours they work or find better-paid jobs.
- The 1.25 percentage point rise in national insurance contributions (NICs), which took effect earlier this year, will be reversed on 6 November 2022.
NUS says mini-budget is ‘ignoring students’
The NUS (National Union of Students) VP for Higher Education, Chloe Field, has told Freshered the mini-budget is “ignoring students” after the Chancellor “had the chance to prove he’s willing to support students” and accused the government of prioritising the 1%.
She said: ‘The new Chancellor had a chance today to prove that he’s willing to support students and to invest in the future of the UK.
‘He sadly decided to prioritise the needs of the 1% instead of those who need support the most, once again ignoring students who are struggling to afford the bare necessities, to feed their families and get to university and college.’