Budget income tax cuts ‘to overwhelmingly benefit the rich’

Income tax cuts for millions of workers announced in Philip Hammond’s budget will “overwhelmingly benefit richer households”, analysis has found, with almost half set to go to the top 10% of households. The analysis by the Resolution Foundation (pdf) thinktank found that welfare cuts would continue to affect the poorest households, despite Hammond’s announcement that austerity was coming to an end. Three-quarters of the £12bn in welfare cuts announced after the 2015 election remain government policy. The overall package of tax and benefit changes announced since 2015 will deliver an average gain of £390 for the richest fifth of households in 2023-24, the thinktank found, compared to an average loss of £400 for the poorest fifth. Read more.