Liz Truss abandons plan to scrap 45p top rate of income tax amid Tory revolt

theguardian.com:

Liz Truss’s government has abandoned its plan to abolish the 45% top rate of income tax in a humiliating U-turn, following a mounting Conservative revolt over the policy and a turbulent reaction from markets.

In a tweet, Kwasi Kwarteng confirmed the change, saying: “We get it, and we have listened.”

The chancellor said the decision to cut tax for people on incomes of £150,000 or more “has become a distraction from our overriding mission to tackle the challenges facing our country”.

He continued: “As a result, I’m announcing we are not proceeding with the abolition of the 45p tax rate.”

The U-turn comes hours before Kwarteng addresses the Conservative conference in Birmingham. Extracts of his speech briefed overnight showed the chancellor had been planning to hold firm on the tax package, saying: “We must stay the course. I am confident our plan is the right one.”

The sudden change of course followed a realisation within Downing Street that so many Conservative MPs objected to the policy that it might be voted down in parliament, amid worries from voters about rising mortgage costs as money markets were spooked by the scale of borrowing.

Interviewed on BBC1’s Breakfast, Kwarteng refused to concede the abolition of the 45p tax rate was a mistake, saying it was taking attention away from policies such as the intervention to limit energy bills.

“What I admit is it was a massive distraction on a strong package,” he said.

Kwarteng did, however, say he would “take responsibility” for the policy, adding: “I’ve said that I’ve listened. I get the reaction. I’ve spoken to lots of people up and down the country. I’ve spoken to constituents. I’ve