The British government reversed its decision to cut income tax for the wealthy just ten days after the budget was announced, causing chaos in the markets and sharp criticism over the rising cost of living.
On the second day of the ruling Conservative Party’s annual conference, Finance Minister Kwasi Quarting said in a social media statement: “Clearly, the removal of the 45 percent tax has distracted us from our first task, which is to address the challenges facing our economy. countries”. As a result, he said that we will not move forward with the abolition of the tax,” he added, “we understood and heard.”
The decision marks the first rejection of the critical policies of Prime Minister Lisa Terras, who took office less than a month ago.
The decision comes after former ministers Grant Shapps and Michael Gove raised concerns about unfunded tax cut funding, Quarting revealed in its controversial Sept. 23 mini-budget.
Quarting has proposed removing the 45% tax for Britons whose annual income exceeds £150,000 ($167,400).
The “mini” budget caused the pound to fall significantly against the dollar and raise bond yields amid fears of increased borrowing.
The budget included a costly freeze on electricity bills for individuals and businesses to reduce the impact of Russia’s invasion of Ukraine, a major gas exporter.
Source: El Nashra