Even after the Government’s U-turn on the top rate of income tax cut, Professor Matteo Richiardi has produced an analysis of the ‘mini-budget’ showing how highly regressive the measures will be.
The analysis for our Centre for Microsimulation and Policy Analysis uses UKMOD, our tax benefit microsimulation model for the UK and devolved nations, to highlight the impact of the budget measures on different types of households.
‘While the Government hopes that scrapping this extra gift to the rich would take the steam out of the wide and transversal opposition to the bill, our analysis indicates that the overall tax cut is still deeply regressive.
The richest decile will still gain from the measure almost 100 times more than the poorest decile in absolute terms, and more than 10 times in percentage terms.’
Read the analysis here