Capitalists And Money

Kwasi Kwarteng ditches 45p tax cut ahead of Tory party conference speech

Liz Truss and Kwasi Kwarteng have dropped plans to scrap the 45p rate of income tax following a revolt by Tory MPs.

Kwarteng, the chancellor, said on Twitter: “It is clear that the abolition of the 45p tax rate has become a distraction from our overall 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 prime minister tweeted: “We get it and we have listened.

We get it, and we have listened. pic.twitter.com/lOfwHTUo76

— Kwasi Kwarteng (@KwasiKwarteng) October 3, 2022

“The abolition of the 45pc rate had become a distraction from our mission to get Britain moving.

“Our focus now is on building a high growth economy that funds world-class public services, boosts wages, and creates opportunities across the country.”

More than 14 Tory MPs, including former cabinet ministers Michael Gove and Grant Shapps, had gone public with their opposition to the plans, branding them “politically tin-eared” at a time when people were struggling with the cost of living. More were expected to go public today.

Truss and Kwarteng met last night and agreed to drop the plans less than 24 hours after the prime minister insisted that they were going to go ahead.

Kwarteng had been planning to use his conference speech today to say that the government will “stay the course” but the scale of the opposition was becoming overwhelming.