Kwarteng’s £45bn monster attack on taxes is the biggest cut since the ‘Barber Boom’ budget in 1972…
- Kwasi Kwarteng’s ‘Emergency Budget’ Includes the Biggest Tax Cuts in 50 Years
- Chancellor has cut taxes by an equivalent of more than 1.5 percent of GDP
- Only 1972 Budget by Ted Heath’s Chancellor Anthony Barber Had Bigger Tax Cuts
Kwasi Kwarteng’s tax cut plans have been touted as the largest since Nigel Lawson’s 1988 budget.
That milestone saw Margaret Thatcher’s chancellor cut higher tax rates in a way praised by the Tory right.
In the event, however, Mr Kwarteng got even bigger today by cutting £45bn from the burden – more than 1.5 percent of GDP.
That’s unmatched since Anthony Barber’s 1972 fiscal package, when he was number 11 under Ted Heath’s premiership.
However, the comparisons with that event of 50 years ago are not entirely happy.
Heath and Barber pursued what would later become known as a free-market approach to Thatcher.
And they were also eager to stimulate the economy with a view to holding elections in 1974 – a similar timetable to Liz Truss and Kwasi Kwarteng.
Liz Truss and Kwasi Kwarteng have put together the largest tax-cutting budget since 1972
The cuts are unmatched since Anthony Barber’s fiscal package 50 years ago when he was in No11 under Ted Heath’s premiership
At the time, Barber cut taxes by the equivalent of about 2 percent of GDP
At the time, Barber cut taxes by about 2 percent of GDP.
But in the end, he only fueled inflation and wage demands, with the oil crisis that followed the following year and a deep recession.
Heath was subsequently ousted by Labor’s Harold Wilson in the February 1974 election, albeit in a hung parliament.
And Wilson won a narrow outright majority in a second election in October of that year.
Mr. Kwarteng’s tax-cutting plans were touted as the biggest since Nigel Lawson’s 1988 budget (pictured) — but just in case they were bigger