Income tax and stamp duty on home purchases will be cut, while planned rises in business taxes have been scrapped, BBC reported.
Kwarteng said a major change of direction was needed to kick start economic growth.
But the Labour party said it would not solve the cost-of-living crisis and was a “plan to reward the already wealthy”.
It came at a time when the Bank of England is warning that the UK may already be in recession.
The pound sank to a fresh 37-year low as the chancellor made his statement, BBC reported.
In a departure from Boris Johnson’s economic policies, Kwarteng has scrapped plans to push up taxes to pay for public services, with the aim of boosting economic growth.
In a Commons statement, being dubbed a mini-budget, he said high tax rates “damage Britain’s competitiveness”, reducing the incentive to work and for businesses to invest.
He also unveiled a cut to the top rate of income tax from 45 per cent to 40 per cent, meaning the UK will have a single higher rate from April, BBC reported.
Facing accusations of a “class war” mini-budget that rewarded the rich more than those on lower incomes, Kwarteng said his efforts to boost growth and energise the economy included helping all households after he brought forward a planned 1p cut in the basic rate of income tax from 2024 to next year, The Guardian reported.
–IANS
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