Pound rises as Kwasi Kwarteng scraps 45p tax cut after market turmoil

The pound rallied as the Chancellor announced a U-turn on the abolition of the highest tax rate for the highest earners.
On Monday, the pound rose to levels seen before the mini-budget earlier this month, sending markets into turmoil with the UK's biggest tax cuts in 50 year.
Kwasi Kwarteng has confirmed that the decision to scrap the 45p tax rate has been dropped, after more than a week of criticism.
The pound fell to a record high amid the market turmoil, sparking fears for the UK economy.
It rebounded overnight as Rumors swirled that the government was preparing to backtrack on the decision to scrap the higher rate of tax for those earning over £150,000.
The pound jumped to $1.13 at one point, before falling slightly to $1.12.
Mr. to address the challenges facing our country."
"As a result, I am announcing that we are not proceeding with the abolition of the 45p tax rate," he said. "We understand and we have listened."
Kwasi Kwarteng announced the tax reduction measures in a mini- budget
(Getty Images)
The day before, Liz Truss said her government remained "absolutely committed" to removing the top income tax rate.
Mr. Kwarteng also retweeted a tweet on Sunday that appeared to defend his tax cuts.
"Rather obsessed with 'optics', let's focus on policies that make the country stronger," said a tweet from a fellow government minister.
Other Tories had railed against the tax plans, with Grant Shapps and Michael Gove criticizing the cuts.
The U-turn on the 45p will be considered a blow of the r brought to the authority of the new Prime Minister and Chancellor.
Mr. Kwarteng said he had "not at all" considered quitting after being forced to dump a key part of his mini-budget.
He declined to apologize directly to the nation for the financial turmoil and rising mortgage rates and to Tory MPs who had been warned they could be kicked out of the parliamentary party for voting against the tax plans.
“There has humiliation and contrition and I'm happy to own it," he told BBC Radio 4's Today program on Monday.

Politics Oct 3, 2022 0 83 Add to Reading List

Pound rises as Kwasi Kwarteng scraps 45p tax cut after market turmoil

The pound rallied as the Chancellor announced a U-turn on the abolition of the highest tax rate for the highest earners.

On Monday, the pound rose to levels seen before the mini-budget earlier this month, sending markets into turmoil with the UK's biggest tax cuts in 50 year.

Kwasi Kwarteng has confirmed that the decision to scrap the 45p tax rate has been dropped, after more than a week of criticism.

The pound fell to a record high amid the market turmoil, sparking fears for the UK economy.

It rebounded overnight as Rumors swirled that the government was preparing to backtrack on the decision to scrap the higher rate of tax for those earning over £150,000.

The pound jumped to $1.13 at one point, before falling slightly to $1.12.

Mr. to address the challenges facing our country."

"As a result, I am announcing that we are not proceeding with the abolition of the 45p tax rate," he said. "We understand and we have listened."

Kwasi Kwarteng announced the tax reduction measures in a mini- budget

(Getty Images)

The day before, Liz Truss said her government remained "absolutely committed" to removing the top income tax rate.

Mr. Kwarteng also retweeted a tweet on Sunday that appeared to defend his tax cuts.

"Rather obsessed with 'optics', let's focus on policies that make the country stronger," said a tweet from a fellow government minister.

Other Tories had railed against the tax plans, with Grant Shapps and Michael Gove criticizing the cuts.

The U-turn on the 45p will be considered a blow of the r brought to the authority of the new Prime Minister and Chancellor.

Mr. Kwarteng said he had "not at all" considered quitting after being forced to dump a key part of his mini-budget.

He declined to apologize directly to the nation for the financial turmoil and rising mortgage rates and to Tory MPs who had been warned they could be kicked out of the parliamentary party for voting against the tax plans.

“There has humiliation and contrition and I'm happy to own it," he told BBC Radio 4's Today program on Monday.