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.
"Second, cutting taxes to put money back in the pockets of 30 million hard-working people and grow our economy.
"Third, driving supply side reforms - including accelerating major infrastructure projects - to get Britain moving."
Plans to get rid of the highest rate of income tax, paid by those who earn more than £150,000 a year, were unexpectedly included in the Government's so-called mini-budget on September 23.
However, A growing number of Conservative MPs had warned they would vote against the measures in Parliament.
There were concerns Ms Truss risked losing a key vote on her vision for Britain just weeks into office.
In total 14 MPs had gone public in indicating their plans to vote with Labour on the issues, just under half the number necessary to defeat the Government.
The rebels were undeterred despite threats of the Conservative whip being removed from those who did not back the measures.
Ms Truss defended the policy just yesterday, describing them as part of an "overall package of making our tax system simpler and lower".
However, she admitted to mistakes in the way the so-called mini-budget had been announced following the panic in the markets.
The Chancellor's measures triggered turmoil in the City, was criticised by the International Monetary Fund and resulted in a £65billion emergency intervention by the Bank of England to restore order.
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