Kwasi Kwarteng U-turns on plans to scrap 45p tax rate
Chancellor Kwasi Kwarteng has confirmed that the government will U-turn on plans to scrap the 45p rate of income tax.
The chancellor told the BBC that the proposals had become “a massive distraction on what was a strong package.”
“We just talked to people, we listened to people, I get it,” he added.
The decision comes after several Tory MPs made their opposition to the plan known.
The plan to scrap the 45p rate, paid by people earning over £150,000 a year, had been criticised as unfair at times of rising living costs.
Kwarteng told the BBC the proposal was “drowning out a strong package” that included support for energy bills and other tax cuts.
The measure was widely opposed by the markets and opposition parties and plenty of Tories – and it seemed like PM Truss wouldn’t have the numbers to get it through.