U K reverses tax cut plans for highest earners after outcry
U.K. reverses tax cut plans for highest earners after outcry
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U K government reverses tax cut plans for highest earners
British Prime Minister Liz Truss and Chancellor of the Exchequer Kwasi Kwarteng in Northfleet, England, last month. Photo: Dylan Martinez — WPA Pool/Getty Images The British government has abandoned plans to cut taxes for the highest earners 10 days after Prime Minister the move, Chancellor Kwasi Kwarteng confirmed Monday. Why it matters: The plans designed to stimulate growth sparked a among members of Parliament in Truss' ruling Conservative Party, and responded by treating the U.K. as if it were an emerging market. What they're saying: "We get it, and we have listened," Kwarteng said in announcing the reversal, calling the outrage at the plans for high income earners "a distraction from our overriding mission to tackle the challenges facing our country." The big picture: The to a record low against the dollar following Kwarteng's Sept. 23 announcement that the government would abolish the 45% rate of income tax for those earning more than 150,000 pounds (about $164,000) a year.The proposal triggered an from Britain's central bank and a warning from that's usually reserved for debt-laden . Of note: Among the Conservative MPs who indicated they would vote against Truss' "mini-budget" plans was the influential former cabinet minister Michael Gove, who told Sunday that "using borrowed money to fund tax cuts" was "not Conservative." By the numbers: A published Sept. 30 found the opposition Labour Party has a 33% lead over the Conservatives — up from 14% when Truss last month after Conservative Party members elected her leader.Photo: Kwasi Kwarteng/ Go deeper: Editor's note: This article has been updated with new details throughout.