Treasury removes misleading claim on Kwasi Kwarteng budget benefits

Treasury removed misleading statement about supposed benefits from the Kwasi Kwarteng budget for middle earners.
The Chancellor's department had claimed that someone with £30,000 a year could save around £12,700 on the package if they bought a 'typical' terraced house in London.
But it turned out that someone applying for a regular mortgage would need a deposit of around £440,000 to qualify.
The message was posted on the Treasury's Twitter account in the wake of the budget, but has now been deleted after being fisked by fact checkers. sumptions".
Officials had claimed that a first-time London buyer on £30,000 a year buying "a representative terraced house" would save £11,250 on stamp duty and £1,050 on utility bills. household energy from the budget as well as £400 in tax.
But the Treasury admitted that by a 'representative terraced house' in London they were referring to the Land Registry figure of around £555,000 by July 2022.
Buying such a house with a regular mortgage - where banks will lend up to 4.5 times someone's salary - would mean someone with £30,000 £per annum would require a deposit of over £400,000
The vast majority of the saving claimed in the budget came from the reduction in stamp duty in the budget. one buying a house would have paid £17,175 on SDLT, and after that would have paid £5,925 afterwards - a savings of £11,250.
The claim was notable because the budget was criticized for giving huge benefits to high-income people over low- and middle-income people.
Mr. from the government's agenda.
Tory poll ratings have fallen to record lows in the wake of the so-called 'fiscal event', with Labor opening a lead of more than 20 points with several pollsters.
But an analysis by the Resolution Foundation think tank found that even with the reversal of this measure, the wealthiest households would still gain 40 times more from the budget tax cuts than the poorest families.
The richest 5% of households are expected to earn £3,500 on average next year, compared to an average cash gain of £90 for the poorest fifth of households, according to the analysis.
Commenting on the removal of the tweet, a UK Treasury spokesperson said: "Although the figures used are statistically accurate, we recognize that certain assumptions have been made about the profile of the typical first-time buyer which have not not reflected in this tweet.
"We take the mess responsible agery very seriously - that's why we removed the tweet in question."

Politics Oct 3, 2022 0 120 Add to Reading List

Treasury removes misleading claim on Kwasi Kwarteng budget benefits

Treasury removed misleading statement about supposed benefits from the Kwasi Kwarteng budget for middle earners.

The Chancellor's department had claimed that someone with £30,000 a year could save around £12,700 on the package if they bought a 'typical' terraced house in London.

But it turned out that someone applying for a regular mortgage would need a deposit of around £440,000 to qualify.

The message was posted on the Treasury's Twitter account in the wake of the budget, but has now been deleted after being fisked by fact checkers. sumptions".

Officials had claimed that a first-time London buyer on £30,000 a year buying "a representative terraced house" would save £11,250 on stamp duty and £1,050 on utility bills. household energy from the budget as well as £400 in tax.

But the Treasury admitted that by a 'representative terraced house' in London they were referring to the Land Registry figure of around £555,000 by July 2022.

Buying such a house with a regular mortgage - where banks will lend up to 4.5 times someone's salary - would mean someone with £30,000 £per annum would require a deposit of over £400,000

The vast majority of the saving claimed in the budget came from the reduction in stamp duty in the budget. one buying a house would have paid £17,175 on SDLT, and after that would have paid £5,925 afterwards - a savings of £11,250.

The claim was notable because the budget was criticized for giving huge benefits to high-income people over low- and middle-income people.

Mr. from the government's agenda.

Tory poll ratings have fallen to record lows in the wake of the so-called 'fiscal event', with Labor opening a lead of more than 20 points with several pollsters.

But an analysis by the Resolution Foundation think tank found that even with the reversal of this measure, the wealthiest households would still gain 40 times more from the budget tax cuts than the poorest families.

The richest 5% of households are expected to earn £3,500 on average next year, compared to an average cash gain of £90 for the poorest fifth of households, according to the analysis.

Commenting on the removal of the tweet, a UK Treasury spokesperson said: "Although the figures used are statistically accurate, we recognize that certain assumptions have been made about the profile of the typical first-time buyer which have not not reflected in this tweet.

"We take the mess responsible agery very seriously - that's why we removed the tweet in question."