Gov abandons plans to scrap 45p income tax rate amid increased pressure

The government has abandoned plans to abolish the 45% top rate of income tax, after media scrutiny, pressure from within the Conservative party and a turbulent week for the economy.

Chancellor Kwasi Kwarteng announced the decision earlier this morning via twitter, saying in a statement “we get it, and we have listened”.

It comes just 10 days after Kwarteng’s mini budget announcement, during which the budget was widely criticised.

Kwarteng said: “It is clear that the abolition of the 45p tax rate has become a distraction from our overriding mission to tackle the challenges facing our country. As a result, I’m announcing we are not proceeding with the abolition of the 45p tax rate.”

Jamie Morrison, head of tax at accountancy firm HW Fisher, said: “It was a bold move by the chancellor to cut the top rate of income tax in his mini-budget – and one that has not paid off. Tackling the UK’s cost of living crisis should be the government’s top priority and it was hard to see how the abolition of the 45p tax rate would have benefitted anyone apart from the UK’s highest earners.”