The Chancellor has confirmed that the Government has made a U-turn on plans to scrap the 45p rate of income tax.
Kwasi Kwarteng told that the proposals, announced just 10 days ago, “have become a massive distraction about a strong package”.
“We just talked to people, we listened to people, I understand,” he added.
The decision, which marks a humiliating climbdown for Prime Minister Liz Truss, comes after several Tory MPs opposed the plan.
Former cabinet minister Grant Shepps warned the prime minister would lose a Commons vote on the proposal.
Plans to scrap the 45p rate paid by people earning more than £150,000 a year have been criticized as unfair at a time of rising living costs.
Mr Kwarteng told that the proposal was “unwinding a robust package” including support for energy bills and other tax cuts.
“The Prime Minister decided not to go ahead with the rate hike,” he added.
However, pressed on whether this was his U-turn, he said: “No, we talked together, I said this is what I had to do and we decided together, we It was agreed that we would not proceed with its abolition. of the rate.”
On Sunday, the prime minister told that the move to cut the top rate of income tax was “a decision that the chancellor made”.
But he also said he was fully committed to “simplifying” the tax system as part of a package to boost growth.
Labor called on the government to “reverse its entire economic, discredited trickle-down strategy”.
Shadow chancellor Rachel Reeves said the U-turn “came too late for families who will be paying higher mortgages and higher prices for years to come”.
