45p tax rate

Chancellor says the plan had become a 'distraction' from the Government's 'overriding mission' to tackle the challenges facing Britain.

The Chancellor will also pledge an "iron-clad commitment to fiscal discipline" on Monday. "My worry is we are betting too much on tax cuts when we are borrowing to pay for them." The parliamentarian also said that junior members of the Government were prepared to resign if the tax cut was not scrapped. He told the Andrew Neil Show on Channel 4 that "ruthless prime ministers will throw their chancellors under a bus". "But I do accept we should have laid the ground better. "As a result, I am announcing we are not proceeding with the abolition of the 45p tax rate. That sort of thing is trying. "One of the things that really ruined my sleep is the markets. [pushing Ms Truss to delay the scrapping](https://www.telegraph.co.uk/politics/2022/10/01/one-nation-tory-mps-centre-rebellion-against-insane-scrapping/) of the 45p rate for a year. ["profoundly concerned" about the decision](https://www.telegraph.co.uk/politics/2022/10/02/not-one-quiet-life-snake-michael-gove-wont-slithering-rock-time/) to borrow to fund tax cuts, calling it "not Conservative". Mr Gove signalled on Sunday that he would not vote to scrap the 45p rate, saying it displayed the "wrong values" and that Ms Truss did not have a mandate for the move. ["stay the course" and stick to all the plans](https://www.telegraph.co.uk/politics/2022/10/02/kwasi-kwarteng-cutting-taxes-sound-credible-will-increase-growth/) outlined in last month's controversial mini-Budget.

Manufacturing: The Institute for Supply Management's manufacturing index — regarded as a leading economic indicator — is expected to show a 28th consecutive ...

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Chancellor Kwasi Kwarteng has abandoned a plan to abolish the top rate of income tax for the highest earners in an astonishing U-turn.

This will allow us to focus on delivering the major parts of our growth package. We get it, and we have listened. “I think he understood that this 45p looked like grossly insensitive timing, and that although they had wanted to throw the kitchen sink at that mini-budget and do everything at once, that there was a recognition that if you try and do too much that you almost end up with a blockage, and you can’t get the policies that are needed through the distraction of things like the 45p thing. “As a result, I’m announcing we are not proceeding with the abolition of the 45p tax rate. “However, 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 issued a statement, hours before he had been due to defend the plans at the Conservative Party conference, saying: “We are not proceeding with the abolition of the 45p tax rate.”

FIRST Minister Nicola Sturgeon has reacted to the news that Kwasi Kwarteng will abolish plans to scrap the 45p tax rate for top earners.

Morally wrong and hugely costly for millions is a better description. UK gov u-turns on top tax rate abolition because it’s a ‘distraction’. [SNP](https://www.thenational.scot/politics/snp/) must match these bold plans”, he added, “and pass on the UK tax cuts to 2.4 million Scottish people.” [Conservative](https://www.thenational.scot/politics/tories/) leader Douglas Ross has previously been slammed for demanding [Holyrood](https://www.thenational.scot/politics/holyrood/) replicate the tax cuts. [Chancellor Kwasi Kwarteng announces plans to abandon abolishing 45p tax rate](https://www.thenational.scot/news/23009195.chancellor-kwasi-kwarteng-announces-plans-abandon-abolishing-45p-tax-rate/) [Nicola Sturgeon](https://www.thenational.scot/politics/nicola-sturgeon/) has reacted to the news that Kwasi Kwarteng will abolish plans to scrap the 45p tax rate for top earners.

Chancellor also says champagne reception was a mistake after confirming government will abandon plan to scrap top tax rate.

The chancellor still has a lot of work to do if he is to display a credible commitment to fiscal sustainability. Michael Gove, who led opposition to the abolition of the 45% tax rate yesterday, said this morning he would need “a lot of persuading” to approve not uprating benefits in line with inflation. She said it would be a “huge mistake” not to increase benefits in line with the cost of living. So I naturally - I’m still a Conservative MP, last time I checked and I’ll check in with the chief whip later - and therefore I will want to support and I think, on the basis of everything I’ve heard, there’s lots that can be enthusiastically supported. Generally it is the opposition parties who have been saying that the replacement of Boris Johnson as PM by Liz Truss should have been followed by a general election. The benefits decision may turn out to be the next flashpoint for the government. What we have to do is bring people back to work and that will not be done by slashing the benefits budget. That uncertainty for people who are already seeing huge increases in their energy prices in the weekly food shop, it’s a time of huge anxiety. And there are many people who are saying that the government needs to rethink this one as well. An apology to the EU and Ireland from Northern Ireland minister and leading Brexiter Steve Baker suggests a climbdown could be on the cards. That was Liz Truss, who said in January there was “a deal to be done”. This exchange was characterised as a “good conversation” by the EU executive, while Cleverly said they agreed they wanted “to look for solutions to protect the Belfast (Good Friday) Agreement”.

Higher earners will lose thousands of pounds in tax savings after the Chancellor abandoned plans to abolish the top rate of income tax next year.

The policy was originally announced less than two weeks ago in the mini-Budget, alongside proposals to introduce a 1p cut to the basic rate of income tax in April. [Kwasi Kwarteng confirmed the Government would not abolish the 45p rate of income tax](https://www.telegraph.co.uk/politics/2022/10/03/liz-truss-news-kwarteng-45p-tax-conservative-conference-updates/) for anyone earning over £150,000 in a statement this morning. Higher earners will lose thousands of pounds in tax savings after the Chancellor abandoned plans to abolish the top rate of income tax next year.

The government is ditching much-criticised plans to scrap the 45p top rate of income tax, the chancellor has announced. In what the BBC described as a ...

[The Sun](https://www.thesun.co.uk/news/19984995/liz-truss-ditch-scrapping-45p-tax-cut/) described the tax U-turn as a “body blow to the new government”. “I don’t think the House is in a place where it’s likely to support that,” Shapps told the [BBC](https://www.bbc.co.uk/news/av/uk-politics-63111779). Overnight briefings of his speech showed that the chancellor had been planning to hold firm on the 45p tax measure, saying: “We must stay the course. I am confident our plan is the right one.” [Liz Truss](https://www.theweek.co.uk/news/world-news/957858/how-the-world-views-liz-truss) would lose a Commons vote on cutting the top tax rate. [BBC](https://www.bbc.com/news/uk-63114279) described as a “humiliating climbdown”, [Kwasi Kwarteng](https://www.theweek.co.uk/news/politics/957848/kwasi-kwarteng-free-market-radical-set-to-be-chancellor) told the broadcaster that the proposal, announced ten days ago in his mini budget, had become “a massive distraction on what was a strong package”.

Scrapping the 45p income tax band for the country's highest earners was announced in the Chancellor's mini-Budget in a bid to grow the economy. The plan ...

[concern that the rate of benefits will not increase in line with inflation](https://inews.co.uk/news/politics/benefits-real-terms-cut-liz-truss-kwasi-kwarteng-claw-back-costs-1885824?ico=in-line_link). [mini-Budget](https://inews.co.uk/news/who-will-benefit-what-the-mini-budget-means-for-you-1876787?ico=in-line_link) in a bid to grow the economy. Sterling surged to $1.13 at one point overnight, going down to $1.12 in early Monday morning trading. [average yearly tax cut of £10,000](https://inews.co.uk/news/politics/budget/will-tax-cuts-affect-me-how-much-tax-pay-1878841?ico=in-line_link). [ sparked the pound’s return to levels seen before the mini-Budget](https://inews.co.uk/news/politics/pound-dollar-u-turn-scrapping-45-income-tax-rate-kwasi-kwarteng-1890293?ico=in-line_link). [Liz Truss](https://inews.co.uk/news/politics/liz-truss-faces-growing-tory-rebellion-as-mps-threaten-to-vote-down-cut-in-top-rate-of-tax-1890055?ico=in-line_link) and [Kwasi Kwarteng have reversed plans](https://inews.co.uk/news/politics/liz-truss-ditch-plans-45p-tax-rate-uturn-tory-backlash-1890264?ico=in-line_link) to abolish the top rate of income tax.

Sterling recovers to levels seen before mini-Budget sent it tumbling to record low against dollar.

Kwasi Kwarteng and Liz Truss will be hoping move reverses some of effects of mini-budget.

The mini-budget hasn't broken the economy, but it might just have broken the Conservative Party. On Sunday, Party Chairman Jake Berry was in bullish mood, ...

From supporting British business to lowering the tax burden for the lowest paid, our Growth Plan sets out a new approach to build a more prosperous economy.

Kwasi Kwarteng says the proposal was "drowning out a strong package" to boost economic growth.