“We perceive and listen.” This is the central point of the announcement by Kwasi Kwarteng, responsible for the Finance portfolio in the government of Liz Truss. As the British press has already anticipated, the executive will even make a “change of gear” in the plan that included the extinction of the highest tax bracket.
In the UK, people earning more than £150,000 a year, equivalent to €171,300, fall into the highest tax bracket. In this range, earnings are taxed at 45%.
The “mini budget” of the government of Liz Truss provided for the elimination of the “45p”, as the scale is known in the United Kingdom. Announced ten days ago, the extinction of this tax bracket was quickly frowned upon by the British. At a time when the cost of living in the UK continues to rise, especially due to inflation and rising energy prices, the plan was seen by many as unfair.
On Twitter, Kwasi Kwarteng announced this change in plans. “From supporting British businesses to reducing the tax burden on people with lower incomes, our growth plans define a new approach to building a more prosperous economy.”
We get it, and we’ve heard it. pic.twitter.com/lOfwHTUo76
— Kwasi Kwarteng (@KwasiKwarteng) October 3, 2022
“However, it is clear that the abolition of the 45 pence level has become a distraction from our mission to address the challenges facing our country. As a result, I am announcing that we will not go ahead with abolishing the 45p level. We perceive and listen, ”he wrote on the social network.
What the British press describes as a “humiliation”, given that the plan was announced 10 days ago, is described by the minister as an opportunity “that will allow” the Government to concentrate “on the main parts of the growth package”. ”. ”.
Topics such as “supporting households and businesses with energy bills” or the plan to “cut taxes and put money in the pockets of 30 million” Britons are listed. Reforms in the area of supply chains are also mentioned, “including speeding up major infrastructure projects to get England moving.”
This announcement contrasts with the position transmitted by the British prime minister to the BBC, who said on Sunday that she was absolutely committed to this measure, since it “simplified” the tax system.
British PM admits tax plan announcement sparked ‘changes’ in economy
Source: Observadora
