The Government is axing its controversial plan to abolish the 45 pence rate of tax
The Chancellor in a tweet this morning said “We get it, and we have listened.” Saying that it had become a “distraction” amid widespread criticism.
‘We felt the 45p rate was drowning out a strong package on intervention on energy and we decided not to proceed with getting rid of the 45p rate” The Chancellor told the BBC this morning
Mr Kwarteng had been preparing to tell the Conservative Party conference in Birmingham that they must “stay the course” and back their tax plans and yesterday the Prime Minister had said that the tax reduction was stay
Overnight former Cabinet ministers Michael Gove and Grant Shapps had criticised the move and there were reports that Tory MP’s were going to rebel when the measures were voted on in the House of Commons
The Sun had reported that Liz Truss had called in Kwarteng for crisis talks and that the pair had drawn up plans to scrap the 45p rate cut.
The pound has risen this morning on the news
