Liz Truss scraps controversial 45p tax cut for rich in U-turn after Tory revolt

Kwasi Kwarteng has confirmed the abolition of 45p tax rate will not go ahead. Liz Truss has scrapped the controversial tax cut for the rich this morning in a huge U-turn after a Tory revolt. The humiliated Prime Minister dropped her plans to axe the 45p top Income Tax rate just a day after saying she was "absolutely committed" to it on national TV. One ex-Cabinet minister branded the PM a "dead woman walking" who would be gone by Christmas as reports emerged of the U-turn in the small hours, while multiple government sources refused to comment. Miss Truss told the BBC yesterday: "It is part of an overall package of making our tax system simpler and lower." And Chancellor Kwasi Kwarteng was expected to tell the Tory conference this evening: "We must stay the course. I am confident our plan is the right one." But, as reported by the Mirror, Mr Kwarteng announced on Twitter today that the cut would not go ahead. He tweeted: "It is clear that the abolition of the 45p tax rate has become a distraction from our overriding mission to tackle the challenges facing the country. As a result, I'm announcing we are not proceeding with the abolition of the 45p tax rate. We get it, and we have listened." The cut in tax from 45% to 40% on earnings over £150,000 costs £2bn a year and would hand a £10k-a-head average saving annually to 660,000 very wealthy people. Original Article: https://www.dailyrecord.co.uk/news/politics/liz-truss-scraps-controversial-45p-28138440 Daily Record Homepage: https://www.dailyrecord.co.uk/ Daily Record Facebook: https://facebook.com/TheScottishDailyRecord Daily Record IG: https://instagram.com/scottishdailyrecord Daily Record Twitter: https://twitter.com/Daily_Record Daily Record Newsletters: https://www.dailyrecord.co.uk/newsletter-preference-centre/ You can get all the latest news, sport, showbiz and comment at DailyRecord.co.uk LIKE | COMMENT | SUBSCRIBE | SHARE #DailyRecord #costoflivingcrisis #liztruss