U-turn: UK government scraps plan to cut 45p tax rate

The UK government has reversed its decision to scrap the top rate of income tax, marking a significant U-turn for new prime minister Liz Truss.

The cut was first announced as part of the mini-budget set out at the end of September by new chancellor Kwasi Kwarteng.

Commenting one the decision to reverse the tax cut on Twitter, Truss said: “We get it and we have listened.

“The abolition of the 45pc rate had become a distraction from our mission to get Britain moving.”

The government had planned to cut the top rate of tax paid by those earning over 150,000 pounds per year from 45 percent to 40 percent.

But that decision has been reversed following a major backlash from the public who face a cost-of-living crisis.

The U-turn came just a day after Truss said in an interview she was “absolutely committed” to the cut.

The pound rebounded following the U-turn announcement having plummeted following the mini-budget announcement last month.