THIS devastating graph starkly illustrates accusations the Tories are a “reverse Robin Hood” by boosting the incomes of the super-rich while the poorest get next to nothing.
Drawn up by Ashwin Kumar, a professor of social policy at Manchester Metropolitan University, the graph shows that while the top 10% of households stand to gain by far the most from the Government’s tax-slashing plans, the worst-off will see no benefit.
Kumar told The National those in the bottom decile of family income would stand to gain only 15p per week on average from the new plans – just enough to buy one banana from a major supermarket.
The figures only apply in England because income tax is partly devolved to Scotland.
READ MORE: Nicola Sturgeon rips into Tories' £45bn tax-cutting plan with scathing verdict
While middle-income families in the fifth, sixth and seventh deciles will stand to take home more of their pay through the Conservatives’ tax plans, it will not be more than £10 per week, according to the figures calculated by the IPPR think tank’s Tax-Benefit Model.
But those in the top 10% will see nearly £100 extra in their bank accounts every week, the data shows.
Worth repeating. Take all the tax changes coming in over next few years and:
— Paul Johnson (@PJTheEconomist) September 23, 2022
If your income is < £155k, you lose
If your income is > £155k you win
If your income > £1m you gain more than £40,000 https://t.co/TkkGIKvNrl
It comes amid a wave of fury from opposition critics who have said Liz Truss’s Government is “robbing the poor to pay the rich” with a combination of tax cuts for the wealthy, scrapping the cap on bankers’ bonuses and halting the planned increase in corporation tax.
READ MORE: Question Time attempts to address bias criticism - but is warned it's not enough
Some £45 billion were pledged in tax cuts but experts have said only those earning eye-wateringly high salaries of more than £155,000 will benefit.
Only people earning more than that figure will “win”, said Paul Johnson, the director of the Institute for Fiscal Studies think tank said.
He added that the tax cuts package was the biggest in 50 years and noted there was not “even a semblance of an effort to make the public finance numbers add up”.
Raising concerns about how the Government’s borrowing plans – on course to reach around £190 billion this year alone – could affect future spending, Johnson added: “Government borrowing is set on an upward path. It will reach its third-highest peak since the war, and remain at well over £100 billion, even once the energy support package is withdrawn.
“Mr Kwarteng is not just gambling on a new strategy, he is betting the house.”
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel