Britain on Monday scrapped plans to axe its top income tax rate just 10 days after a debt-driven budget sparked turmoil on markets and fierce criticism during a cost-of-living crisis.
On the second day of the ruling Conservative Party’s annual conference, finance minister Kwasi Kwarteng tweeted he was “not proceeding” with the removal of the top 45-percent income tax rate, adding it had become a “distraction”.
The announcement also marked the first major policy U-turn under British Prime Minister Liz Truss, who took office less than one month ago.
“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. As a result, I’m announcing we are not proceeding with the abolition of the … rate.
“We get it, and we have listened.”
