UK scraps tax cut for wealthy that sparked market turmoil
The British government has dropped plans to cut income tax for top earners
LONDON (AP) — The British government has dropped plans to cut income tax for top earners, part of a package of unfunded cuts that sparked turmoil on financial markets and sent the pound to record lows.
Treasury chief Kwasi Kwarteng said Monday that he will not scrap the top 45% rate of income tax paid on earnings above 150,000 pounds ($167,000) a year.
“We get it, and we have listened,” he said in a statement.
The U-turn comes as more lawmakers from the governing Conservative Party turn on government tax plans announced 10 days ago. It also comes hours after the Conservatives released advance extracts of a speech Kwarteng is due to give later Monday at the party's annual conference, saying: “We must stay the course. I am confident our plan is the right one.”
