The British Chancellor of the Exchequer Kwasi Kwartenghas announced that the Government will give up lowering the highest bracket of income tax from 45% to 40%a decision that had provoked a rebellion in the conservative ranks themselves. “It is clear that the abolition of the 45% tax had become a distraction from our primary mission of addressing our country’s challenges. As a consequence, we will not move forward with its abolition. We understand that, and we have listened,” he said. the minister in a statement.
The tax plan presented by Kwarteng last September 23 had created convulsions in the marketss in the face of doubts about London’s ability to assume the public debt generated by the tax cut, in the absence of growth forecasts.
Prime Minister Liz Truss, who took office less than a month ago, still defended the decision to lower taxes on top earnersalthough he attributed it directly to his economy minister.
The 180 degree turn Known this morning, just hours before Kwarteng is due to deliver a speech at the Conservatives’ annual congress in Birmingham, he responds, according to the British media, to the growing threat of “Tory” deputies to vote against the plan in Parliament. With the resignation of lower income tax for the wealthiest, the head of Economy considers that he will be able to “focus on carrying out the main parts of the growth package”. First, he cites the help plan for homes and businesses to pay energy bills, which will skyrocket in the coming months as a result of the war in ukraine.
Kwarteng It will also continue with its intention to “reduce taxes and put money in the pockets of 30 million people”, in apparent allusion to the drop from 20% to 19% of the lowest income tax bracket. Finally, he notes that he will push for “supply policy reforms,” including speeding up “major infrastructure projects.”
Kwarteng will deliver his speech starting at 3:00 p.m. GMT at the convention center in the English city of birminghamwhere the “Tories” celebrate their annual date until Wednesday.
Truss, who beat Rishi Sunak in the internal elections for the Conservative leadership, will address the militancy on October 5, while Foreign Minister James Cleverly and Interior Minister Suella Braverman will do so on Tuesday.
The Truss Governance faces this congress with the polls against it, since its bad start has given the Labor Party of Keir Starmer their biggest lead in twenty years, with 54% support versus 21% of the Tories in a recent poll.
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.