The chancellor has scrapped controversial plans to abolish the top rate of tax following days of market turmoil and increasingly vocal opposition across the Conservative party.
In a statement tweeted early on Monday, Kwasi Kwarteng said: “It is clear that the abolition of the 45p tax rate has become a distraction for our overriding mission to tackle the challenges facing our country.
“As a result, I’m announcing that we are not proceeding with the abolition of the 45p tax rate. We get it, and we have listened.
“This will allow us to focus on delivering the major parts of our growth package.”
The U-turn comes just 24 hours after prime minister Liz Truss insisted that the tax cut would go-ahead, telling Sunday with Laura Kuenssberg on the BBC: “I do stand by the package we announced.”
But she also said the tax cut came from Kwarteng, and that the cabinet had not discussed it. “It was a decision the chancellor made,” she said.
