THE UK Government will lift the cap on bankers’ bonuses, Kwasi Kwarteng has told the Commons.

The Chancellor is announcing a series of measures aimed at growing the UK's failing economy in the House of Commons. 

Treasury estimates put the overall measures as costing nearly £45 billion a year by 2026.

He confirmed that the controversial policy would go ahead, despite widespread concerns that the plans will fill the pockets of "friends and donors" rather than help those most struggling during the cost-of-living crisis.

Kwarteng took the opportunity to cut taxes for the highest earners, telling MPs that the 45% higher rate of income tax will be “abolished”.

That means from April, the 629,000 earners in England getting more than £150,000 a year will no longer pay the top income tax rate of 45% and will instead pay the 40% applicable to those on over £50,271.

During his statement, the Chancellor also confirmed that the Tory government will legislate to require trade unions to put pay offers to a member vote so strikes can only be called once negotiations have fully broken down.

READ MORE: Tory MPs CHEER as Kwasi Kwarteng scraps the cap on bankers' bonuses

In addition the planned rise to corporation tax has been axed and it will remain at 19%, the Chancellor announced.

Kwarteng added that he is introducing VAT-free shopping for overseas visitors.

The Chancellor confirmed to MPs that the health and social care levy introduced by Boris Johnson’s government would be cancelled.

Kwarteng insisted that the Tories' economic vision would “turn the vicious cycle of stagnation into a virtuous cycle of growth”.

READ MORE: Tory mini-budget tax cuts will drive UK into 'economic chaos'

Kwarteng said there will be announcements in the coming weeks that will cover “the planning system, business regulations, childcare, immigration, agricultural productivity and digital infrastructure”.

SNP Westminster leader Ian Blackford slammed the mini-budget in a statement following the announcement.

"The sheer recklessness of the chancellors statement is awe inspiring and playing fire with the competency of the treasury," the MP said. "This is economic illiteracy that will do nothing to stem the fall in sterling nor to assist the desire to restrain inflation.

"The priority today was to protect consumers and businesses from higher energy prices. They have failed. Energy costs for consumers have doubled pushing more families into poverty. The Govts flawed priority is tax cuts for the rich. These are the wrong political choices."