UK scraps tax cut for wealthy that sparked market turmoil

LONDON: The UK government has dropped a plan to cut income tax for the top earners, part of a package of non-refundable cuts that caused turmoil in financial markets and sent the pound lower record low.
Treasury manager Kwasi Kwarteng said on Monday that he would not waive the top 45% of income tax paid on income over £150,000 ($167,000) a year.
“We understood and we listened,” he said in a statement.
The U-turn comes as more legislators from regulators Conservatives revealed the government’s tax plan announced 10 days ago.
It also comes hours after the Conservatives released an advance quote of a speech Kwarteng will give the following Monday at the party’s annual conference, saying: “We must continue to act. submit. I am confident that our plan is right.”
Prime Minister Liz Shoes defended the measures on Sunday, but said she could have “do a better job of laying the groundwork” for the announcements.
Truss took office less than a month ago, promising to completely reshape the British economy to end years of sluggish growth. But the government’s September 23 announcement of a stimulus package including £45 billion ($50 billion) in tax cuts, paid for by government borrowing, sent the pound to a record low. against the dollar.
The Bank of England was forced to intervene to revive the bond market, and fears that banks would soon raise interest rates caused mortgage lenders to pull back on their cheapest deals, causing chaos for homebuyers.


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