THE government’s ‘mini-budget’ which has introduced tax cuts and extra benefits restrictions while removing caps on bankers’ bonuses has received mixed reactions.

Treasury estimates put the raft of cuts, including prime minister Liz Truss’s promises to reverse the national insurance rise and axe the hike to corporation tax, as costing nearly £45 billion a year in 2026.

Chancellor of the Exchequer Kwasi Kwarteng argued that the tax cuts are “central to solving the riddle of growth” for the economy.

But the GMB Union fears that this will hit taxpayers hard.

General secretary Gary Smith said: “These same Tories have been in power for 12 years, presiding over a low-growth, low-productivity, low-pay economy.

“The country is crying out for a credible economic vision for the future.

“We need to bring inflation under control and build a modern manufacturing base that creates good jobs at home and enhances our national security.

“Instead, the Chancellor has chosen to pour money into the hands of rich multinationals.

“The Chancellor is tough on care workers’ pay rises and soft on bankers’ bonuses – today’s announcement has set in stone an economy that’s rigged against working people.

“Our members want an economic policy that works for all, not just the spivs and speculators who have done very well out of a Tory government.

“The Chancellor had a chance to set a new approach but instead he failed his first and most important test.”

On the other hand, business experts such as the accountancy director of a Swindon firm welcomed some of the new measures.

Michael Blaken, of Optimum Professional Services, said: “The devil is in the detail, but some of the announcements look like good news for businesses.

“Cancelling the planned increase in corporation tax, reversing the increase in National Insurance, and keeping the Annual Investment Allowance at £1m are welcome.

“Whether they are enough to get the economy growing again remains to be seen.

“There was some information given about the reversal of off-payroll working rules, known as IR35. We have many contractors among our clients, and it will be interesting to see if this opens the market for contractors to move away from umbrella companies.

“As conveyancing lawyers, we welcome the cut to stamp duty land tax for house buyers, in particular first-time buyers.

“Of course, this has to be balanced by the fact that interest rates are rising, making mortgage borrowing more expensive.

“One definite positive: no increase in duties in beer, cider, wine, and spirits!”