Liz Truss was facing threats of a Commons rebellion over her tax policy.
Liz Truss
Liz Truss and Kwasi Kwarteng have made a major U-turn on their plans to scrap the 45p tax rate after outrage from Tory MPs. The Chancellor said “we get it, and we have listened” as he confirmed he was ditching the policy less than two weeks after it was announced.
“It is clear that the abolition of the 45p tax rate has become a distraction from our overriding mission to tackle the challenges facing our country,” he said this morning.
“As a result, I’m announcing we are not proceeding with the abolition of the 45p tax rate.”
He said the shift would allow to Government “to focus on delivering the major parts of our growth package”.
Outlining the measures taken to get Britain booming, he added: “First, our Energy Price Guarantee, which will support households and businesses with their energy bills.