Britain's Chancellor of the Exchequer Kwasi Kwarteng steps outside Downing Street in London, Britain, September 23, 2022. REUTERS/Maja Smiejkowsk

UK's Kwarteng to scrap top rate of income tax, cut basic rate from April

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2022-09-23 10:31:08

Britain's Chancellor of the Exchequer Kwasi Kwarteng steps outside Downing Street in London, Britain, September 23, 2022. REUTERS/Maja Smiejkowska

LONDON, Sept 23 (Reuters) - Britain's new finance minister Kwasi Kwarteng said on Friday he would scrap the country's top rate of income tax and cut the basic rate next April - a year earlier than expected - to spur economic growth.

Kwarteng said from April 2023 Britain would have a single higher rate of income tax of 40 per cent, scrapping an additional rate of 45% on income over 150,000 pounds ($168,000).

"That means a tax cut for over 31 million people in just a few months' time," he told parliament. "That means we will have one of the most competitive and pro-growth income tax systems in the world."