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Are low interest rates gone forever? How much will tax cuts save me? Has this economic strategy worked elsewhere? Could this bankrupt UK? Your questions answered

Business presenter Ian King and deputy political editor Sam Coates answered your questions on the mini-budget.

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That's all for this Q&A - but you can scroll through the answers below

Are low interest rates gone forever? How much will tax cuts save me? Has this economic strategy worked elsewhere? Could this bankrupt UK? 

These were some of the questions tackled by business presenter Ian King and deputy political editor Sam Coates.

Thanks to them for their time - and to the several thousand of you who submitted questions.


How long before we start seeing the growth that this plan is supposed to illicit – will it be instant or take years?

Ian King, business presenter:

Good question. The government said today that the measures announced today "represent an ambitious first step towards achieving 2.5% trend growth in GDP" but has wisely not tried to put a date on that. 

It is difficult to say how quickly these measures will have an impact - don't forget that the cuts in income tax don't come in until April next year. 

And an awful lot will depend on external factors, for example how quickly China abandons its latest COVID lockdowns or how quickly the conflict in Ukraine comes to an end.

Mr Curious:

I earn £180k - what does this change mean for me?

Ian King, business presenter: 

Your tax and national insurance bill will come down by just over £4,000. But I can't give a more detailed answer without knowing your other circumstances.

And if anyone else wants to check how they will be affected, you can use our calculator below.


Kwasi Kwarteng talks of the 45% higher rate being "abolished" and replaced with a single higher rate of 40%. This suggests the £50,271 threshold is increasing but do we know to what?

Ian King, business presenter:

I don't think you can assume that. But see my answers elsewhere. I suspect the chancellor will raise the threshold at which the 40% tax rate kicks in at some point before the next general election.


I'm about to buy a house in Wales. Will stamp duty change there as the Welsh government have their own tax system, which is robbery compared to England?

Ian King, business presenter:

That will be a matter for Mark Drakeford and the Welsh government. 

The Treasury statement says this: "As Stamp Duty Land Tax is devolved in Scotland and Wales, the Scottish and Welsh governments will receive funding through the agreed fiscal framework to allocate as they see fit."

Paul Foulkes:

I am due to complete on my new house on Monday the 26th. It is £230,000. Will I still have to pay the stamp duty now I have already exchanged on contracts?

Ian King, business presenter:

The change in stamp duty is effective immediately – so you should benefit from the measure.


How will stamp duty affect buy to let investments? Will I be able to claim a refund on a recently purchased residential property?

Ian King, business presenter:

The stamp duty changes are effective immediately. If you completed before today, bad luck.


Why has the government chosen to reduce tax more for the higher earners than for those on lower incomes, when it is the lower-income families that are facing the toughest challenges in this cost of living crisis?

Sam Coates, deputy political editor:

Their argument is that this will better attract growth, encouraging firms to grow and relocate to the UK to take advantage of the personal tax situation. 

The political strategists in Number 10 may also want to tempt Labour into attacking the help for better off so they can accuse them of class war. 

Once upon a time higher earners would be considerably more likely to vote Tory, but voting patterns are less rigid now.


Has the UK just found itself in the middle of an ideological experiment?

Ian King, business presenter:

I think that's a fair assessment. No country has ever cut taxes and raised borrowing like this – at a time when interest rates are going up – since Ronald Reagan did it in the early 1980s.


Is trickle down economics proven to work? From what I can see, this budget does nothing for the average hard working family and I honestly don't know how these changes affect millions who are already struggling paycheck to paycheck.

Ian King, business presenter: 

I imagine the chancellor would say that this will help the average hard working family because he has cut the basic rate of income tax, which helps everyone in work. And don't forget they are also spending vast sums to protect households and businesses from the impact of higher energy bills.

On trickle down economics, see my other answers elsewhere.