UK announces plan to slash tax and boost investment

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By Thomas Bolton
UK Chancellor Kwasi Kwarteng
UK Chancellor Kwasi Kwarteng   -   Copyright  Credit: Kirsty Wigglesworth/Copyright 2022 The Associated Press. All rights reserved

The UK government on Friday revealed a radical package of tax cuts and reform aimed at stimulating investment in the country.

After little more than two weeks in the role, Chancellor Kwasi Kwarteng announced plans to scrap the top rate of income tax, reverse a rise on corporation tax, and ditch the cap on bankers' bonuses -- in a move he says will make the UK a more attractive prospect for investment.

"We won't apologise for managing the economy in a way that increases prosperity and living standards," Kwarteng told the House of Commons on Friday morning. 

"Our entire focus is on making Britain more globally competitive, not losing out to our competitors abroad."

The announcement saw the pound tumble further against the dollar to its lowest point since 1985.

It comes just a day after the Bank of England voted to again raise interest rates as the country tries to battle rising inflation.