To share this visual representation of the figures we are talking about with Liz and Kwasi's 'mini' budget

[GreenLunchBox]

I think we've become desensitised to the thought of a billion pounds because since covid these sorts of numbers have been thrown around with ease. Sunak wrote off £4.3 billion of our money that he handed to covid loan fraudsters, for example, and we just shrugged.

Very important graphic here by Led By Donkeys:
kamikwasi.tax/

But surely that's a parody - not a real person??

@mrsfeatherbottom is correct. She is a parody account. A very good one obviously.

I hate to tell you this, but 65bn (per year) was the cost of cutting the taxes. The 20bn was then added to the cost of existing government debt due to the impact on financial markets of such a reckless budget. So the net effect was an increase in government costs to £85bn. Per year. And it could go up if lenders charge the uk more to borrow due to loss of confidence in well...the competence and indeed sanity of the Conservative government.

Ok so the rich benefit from the lower rate cuts too though. So e.g. someone on say 20k saves 1% on their income from approx 12.5k and 20k (7.5k taxed at 19% instead of 20%) if I'm a high earner on say 100k I now save 1% on income between 12.5k and 50k (the threshold for being taxed 40%) so I save on 50k minus 12.5k so saving on 37.5k. Additionally you have to consider the impact on the markets because of a shocking lack of understanding or indeed proper scrutiny in carrying out this budget. Markets reacted because there was no indication of how far they'd go and then bang. So Britain then looks risky to lenders. So then inflation and interest goes nuts. Who does this impact more on? The person with no mortgage who decides to skip this years latest ferrari as its a bit pricey or the family with both parents on say 20k working 50 hours each per week abd a mortgage on a 2bed semi their kids share a bedroom in.

Great website!

What’s wrong with £1B of tax cuts going to the higher earners? They don’t need it. They are much less likely to lose their homes because of the interest increases. Less likely to not afford food. Less likely to worry how to heat their homes enough for the DC to be healthy rather than have respiratory problems due to mould in cold and damp homes.